CFPB Releases Report, Tool on Claiming Social Security Benefits

Four in ten late baby boomers are reaching retirement with limited or no savings and are projected to face a savings shortfall, the Consumer Financial Protection Bureau said today in a report on retirement security and Social Security benefits. According to the report, 75 percent of consumers in 2013 claimed their Social Security benefits before their full retirement age, and 46 percent claimed at their earliest eligibility age, leaving them with a lower monthly benefit than those that wait.

A lack of basic knowledge and misconceptions about Social Security may be hindering retirees’ ability to make informed decisions about when to claim their benefits, the CFPB said. To address this, the bureau issued a new interactive, online tool to help consumers understand and plan for collecting their Social Security benefit as they near retirement age.