Boomers' Benefits Dilemma: Less Now or More Later

Jan. 19, 2008 — -- Out of the 78 million baby boomers in the United States, almost 3 million will turn 62 this year, making them old enough to collect Social Security. But they can also wait and get larger checks down the road. So, is it smart to take the money now?

Absolutely not, says Laurie Ditzel, a retired nurse in Rochester, N.Y.

"I'm waiting to take my benefits because I consider it an insurance policy," she said.

It's an insurance policy that will pay her 25 percent more if she waits an additional four years. It will pay even more if she waits until she is 70 to collect. That is the choice facing the oldest of the baby boomers — take the money now or wait and get bigger monthly checks.

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Sixty-two-year-olds are split right down the middle. About half want the money now, like Rochester resident Geraldine Schnell, a retired teacher and grandmother. Because her family has a history of heart trouble, she believes she could start receiving checks now.

"I've been checked and I think everything is fine," she said. "But I'll live the life today and enjoy it."

It's all about longevity. Financial planners say that if at 62 you think you have a long life ahead of you, you could make a colossal blunder by taking your benefits now.

But what if you have money problems now? What if your job is shaky, your health is not so good and you are still too young to qualify for Medicare. The temptation is great to take the money and run.

David Certner, director of federal affairs for the AARP, told ABC News, "You're talking about the difference between an economic decision and a psychological decision, which is, 'I can get some money now, maybe I should just take it because I'm not sure what's going to happen later.'"

For aging baby boomers, it's a hard call, and one that affects their financial security for the rest of their lives.