Quick Read
JPM CEO Jamie Dimon admits lower-income Americans were left behind, and for 46% of retirees with zero savings, Social Security is their only income.
Claiming at 62 instead of 70 locks in a permanent 30% benefit cut that compounds larger every year through annual COLA raises.
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Picture a 66-year-old retired bookkeeper in rural Mississippi. She worked 40 years, raised two kids, and finished her career earning about $49,500 a year, almost exactly the national median wage. Her 401(k) balance is zero because her employers, mostly small local businesses, never offered one. Her checking account holds a few thousand dollars. Her monthly Social Security deposit is her entire retirement plan.
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Her situation is not unusual. Roughly 46% of Americans have no retirement savings at all, and for many in the bottom half of American households by wealth, Social Security provides most, and often nearly all, of retirement income. The same $2,000 monthly check that a wealthier retiree treats as a bonus on top of a brokerage account is, for millions of others, the rent, the groceries, the Medicare Part B premium, and the electric bill.
According to Federal Reserve Distributional Financial Accounts data, the top 0.1% of U.S. households hold many times the wealth of the entire bottom 50% combined. JPMorgan (NYSE:JPM) CEO Jamie Dimon, discussing rising anti-wealth sentiment this summer, said it succinctly: “We have, in fact, left the lower-income folks behind.” One half has portfolios. The other half has a check from the Social Security Administration.
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Why the Claiming Decision Is Higher Stakes at the Bottom
When Social Security is a supplement, taking it at age 62 versus 70 is a lifestyle question. When it is the whole floor, it is the single most important financial decision a person will ever make. Claiming at 62 permanently lowers a recipient’s benefit by about 30% compared with waiting until full retirement age (FRA) of 67. Waiting until 70 adds roughly 24% on top of the FRA. On a $2,000 full-retirement-age benefit, that is the difference between about $1,400 a month for life and about $2,480 a month for life.
For a retiree with a 401(k), that spread might mean an extra vacation. For our bookkeeper, it is the difference between covering rent alone and needing SNAP and heating assistance every winter. Because the 2026 cost-of-living adjustment (COLA) is 2.8%, that gap compounds every year for the rest of her life. A higher starting benefit means a bigger COLA raise, forever.
For couples, a surviving spouse can step up to the higher earner’s benefit, which is why the higher earner in a couple delaying to 70 also buys longevity insurance for the widow or widower. The earnings test, which temporarily withholds benefits from workers under FRA who earn above roughly $24,480 in 2026, catches many lower-income retirees who try to claim early and keep working part-time.
How the Rest of the Picture Fits
For bottom-half earners, there is no meaningful drawdown strategy because there is little to draw down. The Saver’s Credit at the IRS can add up to $1,000 back to a still-working low-income saver who puts even $50 a month into an IRA. Supplemental Security Income (SSI) tops up benefits for those with very low income and assets. Medicare Savings Programs, run through each state Medicaid office, can pay the Medicare Part B premium (about $202.90 a month in 2026 for most enrollees), which alone represents a meaningful raise for someone living on $2,000.
As of Q1 2026, the national savings rate has fallen to 3.9%, down from over 6% just two years ago. Meanwhile, the University of Michigan consumer sentiment index hovers at recessionary levels. Households are not building the buffer that would ease reliance on the check.
What to Actually Do
If Social Security will be most of your income, the highest-leverage moves are simple:
Delay if you possibly can. Waiting from 62 to FRA adds up to a permanent 30% increase, and each additional year worked past full retirement age up to 70 adds roughly 8% more. That raise is inflation-adjusted and lasts as long as you or a surviving spouse live.
Coordinate as a couple. The higher earner delaying to 70 protects the survivor. This one decision often outweighs every other choice a lower-income couple will make in retirement.
Claim the help you already qualify for. SSI, Medicare Savings Programs, LIHEAP, and SNAP have low take-up rates because people assume they will not qualify. Many do.
The hardest mistake to undo is claiming early out of anxiety and locking in a permanently smaller check. The guaranteed, inflation-adjusted, lifelong nature of Social Security is exactly what makes it the right backbone for a household with no other cushion. For a fuller walk-through of the tradeoffs at each age, our team’s Social Security Decision report lays out the claiming math in one place. A quick sit-down with a benefits counselor at your local Area Agency on Aging can catch details a general article never will.
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