Transcript of the podcast:
After you listen
- To hear more about how present bias works, listen to the "The Temptation of Now" episode of the Choiceology podcast.
- Read about more how to maximize your Social Security benefits at schwab.com/SocialSecurity.
In this episode of Financial Decoder, host Mark Riepe examines one of the most critical retirement decisions: When should you take Social Security? When you claim too early, your benefits are reduced, and yet a large percentage of people claim at the earliest possible age. What's driving this decision? Mark looks at three psychological phenomena that could impact the decision: loss aversion, present bias and reference points.
Joining Mark in the discussion is Rob Williams, Vice President of Financial Planning, Income Planning and Wealth Management.
- Many of the rules and reports that Mark and Rob discuss can be found on the website of the Social Security Administration.
- The 2017 Annual Statistical Supplement to the Social Security Bulletin shows that 30% of Americans claim benefits at the earliest possible age—62. Here's why many of them regret it.
- The link between income and wealth and longevity was studied by researchers at the Urban Institute in this 2015 report.
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