Relying – Earlybirds Invest

A new study from MIT has found that relying too much on artificial intelligence (AI) tools like ChatGPT could hinder the ability to think clearly and remember information.

Researchers at the university’s Media Lab asked 54 people to complete writing tasks over four sessions. Each person used one of three methods, which were writing without help, using a search engine, or relying on ChatGPT.

In the final session, people who had used ChatGPT were asked to write without any tools, while those who had worked without help were told to try using the chatbot. The result showed that over 83% of the ChatGPT users could not remember parts of what they had just written.

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In a June 18 post on X, Alex Vacca, co-founder of ColdIQ, said the AI tool might not be helping people work better, but instead weakening their thinking. He explained that when ChatGPT handles the task, people seem to forget what was written almost right away.

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To better understand what was happening in the brain, researchers used EEG machines to track brain activity during each task. They found that brain activity dropped the more someone relied on an AI tool.

People who wrote without help showed the highest level of mental effort. Those who used search engines were in the middle. Meanwhile, participants using ChatGPT showed the lowest levels of brain engagement.

The study also discusses a concept known as “cognitive debt”. This means that it may save energy in the moment when people rely on AI tools, but there could be long-term downsides. These include weaker problem-solving, less original thinking, and being more easily influenced by others.

Meanwhile, a study published in Nature Human Behavior on May 19 found that GPT-4 was more persuasive than humans in 64% of debates. How? Read the full story.

Use your age to your advantage

In a newsletter released in late 2024, Suze Orman discusses some of the pitfalls of retirement planning in America — especially for those who don’t have many income sources outside of Social Security.

“[S]o few workers are covered by traditional pensions that provide guaranteed income in retirement,” she explains. “Another issue is the poorly constructed 401(k)/403(b) system, which is full of so many potholes that are easy to trip up on.”

If you don’t have a solid nest egg to fund retirement, you may end up heavily relying on Social Security. While it isn’t necessarily a bad thing to depend on your benefits, the system can be confusing at times. Not everyone knows how to maximize their monthly checks, especially when choosing a claiming age.

Orman goes on to say that “it is so smart for anyone in good health in their 60s to wait as long as possible to start receiving their Social Security retirement benefit.” Although you can file as early as age 62, delaying benefits up to age 70 can make retirement far more affordable for those who don’t have many other income sources.

Boost your benefits by hundreds of dollars per month

When choosing a Social Security start date, the first figure you’ll need to know is your full retirement age (FRA). This is between ages 66 and 67, depending on your birth year, and filing at this age will earn you 100% of your benefit based on your work history.

Social Security full retirement age chart.

Image source: The Motley Fool.

By filing earlier than your FRA, your payments will be reduced by up to 30% per month. If you delay until age 70, though, you’ll receive your full benefit along with an additional 24% to 32% per month.

Say, for example, you have an FRA of 67 years old, and you’d collect $2,000 per month by filing at that age. If you were to claim at 62, you’d face a 30% reduction — leaving you with $1,400 per month. By waiting until 70 to file, though, you’d collect your full $2,000 per month plus a 24% bonus — for a total of $2,480 per month.

In other words, in this scenario, the difference between filing at 62 and 70 would amount to a whopping $1,080 per month. If you’re going to be depending heavily on Social Security in retirement, that extra cash could be a game-changer.

Why your health should factor into this decision

There’s a reason why Orman specifically mentioned that those in good health in their early 60s should consider delaying benefits, because your health and life expectancy should play a part in deciding when to file for Social Security.

If you’re in your late 50s or early 60s and you’re battling health issues or have reason to believe you may not live well into your 70s, it may not make sense to delay benefits. Each check will be larger once you eventually file, but if you only have a few years to enjoy that money, delaying might not be worth it.

Nobody knows precisely how long they’ll live, of course, and this isn’t the most pleasant part of retirement planning. But when you have a rough idea of how many years you might spend in retirement, you can make the best claiming decision to maximize your lifetime income.

Delaying Social Security could boost your payments by hundreds of dollars per month, but there’s no one-size-fits-all approach when deciding on an age to file. By considering your financial goals and health expectations, you can make the best choice for your retirement.