CFPB Releases Tool to Help Consumers Decide When to Claim Social Security

CFPB

On November 12, the CFPB released “Planning for Retirement,” an online tool intended to help older consumers make informed decisions regarding Social Security retirement benefits. On the same day, the CFPB published a report titled “Issue Brief: Social Security Claiming Age and Retirement Security.” According to the report, many consumers decide to collect Social Security benefits at the earliest possible age of 62 without (i) knowing the full retirement age range of 66 to 67, depending on the person’s birth year; and (ii) understanding the effects of collecting Social Security claims before the full retirement age, such as the substantial reduction of monthly benefits. The CFPB’s new interactive tool (i) uses Social Security Administration formulas to help consumers estimate how their age will affect their Social Security retirement benefits; (ii) provides claiming tips relevant to a consumer’s specific situation; and (iii) provides suggested action steps to help consumers plan their retirement.