State-run retirement programs that automatically enroll private workers could help future retirees maximize their Social Security benefits, a new study suggests.
Based on projected account balances in 2050, 39 percent of participants in such auto-enrollment strategies would have enough to delay claiming Social Security by a year or more even at low contribution levels, according to research released Wednesday by the Pew Charitable Trusts.
For every year a person puts off claiming benefits, their monthly payment jumps by about 8 percent.
"Some people have questioned whether these accounts will make a difference, but these findings show they could have a big impact for both higher- and lower-income earners," said Alison Shelton, a senior research officer on Pew's retirement savings team.
The research, done with help from the Social Security Administration, assumed an average contribution rate of 3 percent of a worker's income. For about a fifth of all account holders, their balances would be enough in 2050 to provide income equivalent to their Social Security benefit for at least two years, based on current formulas.
Based on projected account balances in 2050, 39 percent of participants in such auto-enrollment strategies would have enough to delay claiming Social Security by a year or more even at low contribution levels, according to research released Wednesday by the Pew Charitable Trusts.
For every year a person puts off claiming benefits, their monthly payment jumps by about 8 percent.
"Some people have questioned whether these accounts will make a difference, but these findings show they could have a big impact for both higher- and lower-income earners," said Alison Shelton, a senior research officer on Pew's retirement savings team.
The research, done with help from the Social Security Administration, assumed an average contribution rate of 3 percent of a worker's income. For about a fifth of all account holders, their balances would be enough in 2050 to provide income equivalent to their Social Security benefit for at least two years, based on current formulas.
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