The two million consumers who annually choose when to begin collecting Social Security retirement benefits make the decision based on “limited and incorrect information,” which results in them taking benefits too soon, according to a report released Thursday by the Consumer Financial Protection Bureau.
To help remedy the situation, the CFPB’s Office for Older Americans released the same day an interactive, online tool, “Planning for Retirement,” to help consumers decide when to claim their Social Security benefits.
CFPB Director Richard Cordray said at a retirement event at the Brookings Institution in Washington Thursday that the tool, built in collaboration with the Social Security Administration, gives consumers the information and confidence they need to make a well-informed choice when it comes to deciding at what age they should begin taking their payments.
Because claiming Social Security is a “one-time choice,” Cordray said, “it is imperative that consumers can properly weigh their options with all the relevant information and factors in mind.”