5.9: Retirement Options

DIRECT SSA TO BETTER INFORM FUTURE BENEFICIARIES ON RETIREMENT OPTIONS.

Other Information:

Direct the Social Security Administration to improve information on retirement choices, better inform future beneficiaries on the financial implications of early retirement, and promote greater retirement savings. Working longer and saving more has significant positive implications for both individuals and society as a whole. Yet the mixed signals sent to individuals often lead them to make less informed, and potentially precarious, choices. To help correct this, we propose directing SSA to provide better information to the public on the full implications of various retirement decisions, with an eye toward encouraging delayed retirement and enhanced levels of retirement savings. We encourage SSA to consider behavioral economics approaches (such as structured choice and others based in sound science) when providing this information. Note that the Commission does not make specific recommendations to reform the Social Security Disability Insurance (DI) program or the Supplemental Security Insurance (SSI) program beyond program integrity investments discussed in recommendation 6.4. The Commission recommends a comprehensive redesign of the DI program to modernize both the program objectives and the eligibility criteria to better provide adequate and appropriate support to the disabled community without putting in place barriers to work and full community participation. This redesign is a critical next step, but is beyond the scope of this Commission.

Stakeholder(s):

• Social Security Administration (SSA)

Indicator(s):

Indicator:1

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