How Financial Advisers Educate Americans about Social Security
As the largest demographic of our population ages and sets their sites on their longest vacation called “Retirement” a very import decision must be made. A decision that could quite possible cost them 10s if not 100s of thousands of dollars. According to a recent study published by Mathew Greenwald, Andrew Biggs, and Lisa Schneider of the PRC, American workers have demonstrated relatively low levels of knowledge of how Social Security works. Most claim benefits at age 62, far earlier than many experts believe is optimal. Early claiming has a particularly negative impact on women. A significant proportion of workers use professional financial advisors and most workers participate in a defined contribution plan. Through a survey and in-depth interviews information was collected on how advisors and plan providers counsel clients and participants on Social Security. The results indicate steps that could increase the effectiveness of these channels to provide effective education and advice on Social Security and claiming. For more insight to this eye-opening research please click the link to download the working white paper.