Data Shows Older Americans Are Underestimating Their Social Security Benefits
Many seniors end up struggling financially once their careers wrap up. And part of the problem is that they overestimate the amount of money Social Security will pay them and don't save enough as a result.
But new data from the National Bureau of Economic Research reveals that many older Americans are actually underestimating the amount of income they'll get from Social Security. In fact, on average, pre-retirees are underestimating their annual Social Security income by approximately $1,896, or 11.5%.
Now on the one hand, that's not such a terrible thing. If you go into retirement thinking you'll get a certain monthly benefit from Social Security only to wind up with more, you'll be in a position where you suddenly have extra cash to spend. And it's certainly better to underestimate your annual Social Security income than overestimate it.
Source Fool.com
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