by Andrew G. Biggs, Mathew Greenwald, Lisa Schneider
American Enterprise Institute
August 07, 2012
Working Paper Series
Many experts believe that many older workers have not accumulated enough money to enable them to maintain financial security throughout their retirements, especially if they live beyond their life expectancies. One way to enhance retirement financial security would be to better educate people about when to claim Social Security benefits so they can make an informed choice. Currently, many Americans are not well informed about when to claim. Two channels are often used to educate workers about Social Security and the optimal time to claim: financial advisers, and defined contribution (DC) plan providers. This paper examines current practices in terms of how financial advisers and plan participants educate those they serve, identifies some shortcomings, and offers suggestions to enhance education and advice.
