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Terry Savage: Avoid this Social Security con job
Larry Kotlikoff says the offer can cut monthly benefits by 3% and leave retirees with less money later.
- Social Security is offering retirees an immediate lump-sum payment, though economist Larry Kotlikoff warns the offer acts as a "massive con job" by permanently reducing future monthly benefits.
- Retirees considering this payout must claim benefits before age 70, sacrificing the significantly higher monthly income that comes with delaying retirement beyond the standard age.
- Author Terry Savage joins Kotlikoff in advising against the offer, noting that many recipients fail to calculate the long-term financial cost of prioritizing immediate cash.
- Accepting the lump sum permanently reduces Social Security monthly checks by 8% for every year claimed before age 70, substantially lowering total lifetime earnings for beneficiaries.
- Facing projected depletion of the Social Security Trust Fund, the government offers these options to manage liabilities, though experts argue they are rarely the optimal long-term strategy.
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3 Signs You're Claiming Social Security Too Soon
Key PointsClaiming Social Security before full retirement age reduces your monthly benefit for life.If your health is great and you're still earning a decent chunk of money, waiting could pay.Factor your level of savings into the decision as well.The $23,760 Social Security bonus most retirees completely overlook › When it comes to Social Security, the timing of your claim matters. Even though your benefits are calculated based on your personal …
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Terry Savage: Avoid this Social Security con job
Social Security is making an offer you should refuse. Famed economist and Social Security expert Larry Kotlikoff calls it a“ massive con job.” And he explains that, like any con job, the offer is so enticing, it’ s hard to…
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Total News Sources27
Leaning Left2Leaning Right0Center25Last UpdatedBias Distribution93% Center
Bias Distribution
- 93% of the sources are Center
93% Center
C 93%
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