Marshmallows and Social Security

Commentary Presented by: Dana Dunkelberger

​​I thought you would enjoy this week’s article as it explains the old “marshmallow test” in answering the question of “should US retirees delay claiming Social Security until age 70, even if they have to spend savings until then?” You may ask “What do Social Security benefits and marshmallows have in common? When placed squarely in front of most people, both are hard to resist.” “Almost everyone knows about the famous “marshmallow test.” In the late 1960s, Dr. Walter Mischel of Stanford put marshmallows under the noses of preschoolers and asked them to wait 15 minutes before popping them in their mouths. Some were promised a reward if they “delayed gratification.” Most kids couldn’t go the distance. Similarly, Social Security benefits become available to most Americans at age 62, and people who retire in their early- to mid-60s tend to file for Social Security right away. Few retirees delay claiming until age 70, when the monthly benefit is as much as 76% higher than at 62. Experts at the Center for Retirement Research (CRR) at Boston College would like to help people stop treating Social Security like a marshmallow”. This might be easier said than done when we need an additional income. Call us, we may have some options that can help solve this problem. We’re always here to help.

read the full article