NAPLES, Fla., Oct. 31, 2012 /PRNewswire/ -- The BMO Retirement Institute today issued a national report which found that many retirees in Florida begin drawing Social Security benefits before full retirement age and may lack understanding of how decisions about this and other key issues surrounding Social Security can affect their lifetime retirement earnings.

The report, Retirees Not Maximizing Social Security Retirement Benefits, revealed that many retirees are taking their benefits too early and are not necessarily aware of options and strategies that may result in higher benefits.

"Rising health care costs, longer life expectancy, and fewer defined benefit pensions mean Social Security could play an even bigger role in ensuring the next wave of retirees feel secure in their retirement," said Jack Kuhn, Florida Managing Director, BMO Private Bank. "It's critical that retirees research their options and get expert advice so they can make informed decisions to maximize their benefits.After all, they paid into the program why not take full advantage of it?"

Timing Affects Dollars

The decision about when to begin taking Social Security can have an impact that can last a lifetime. For example, claiming Social Security as early as age 62 means receiving a reduced dollar amount for life, while waiting until full retirement age or beyond yields a higher amount for life. However:

Key Factors

The report also revealed several factors that influence when people begin taking their Social Security:

Spouses Have Rights Too

Another area affecting retirees is how retirement affects their spouse. The report found that retirees are not fully aware of all their options:

This lack of knowledge means that many could be missing out on thousands of dollars annually, since Social Security rules allow a person to receive up to 50 percent of a spouse's benefit and a widow to receive 100 percent of a spouse's benefit.

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BMO Retirement Institute Report: Floridians Draw Social Security Sooner Than National Average