Key Points
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Applying for Social Security early shrinks your benefits — and delaying increases them.
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You must apply at your full retirement age (FRA) if you want the full benefit you’ve earned.
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It’s fine to claim earlier or later as long as you understand how this will affect your checks.
You know your age when you sign up for Social Security matters, but once you dig into your options, it’s easy to get stuck in analysis paralysis. Claim too early, and you could permanently short-change yourself. Claim too late and you risk getting nothing at all, but your family could get more after you’re gone.
Rather than risk either extreme, you can also choose to sign up at your full retirement age (FRA). But this may not be when you think.
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Why signing up at your FRA could be a perfect middle ground
Your FRA is the age at which you qualify for the full Social Security benefit you’ve earned based on your work history. Sign up then, and you won’t get any delayed retirement credits that boost your benefit, but you also won’t lose any money to the early claiming benefit reduction.
Some people think FRA is 65 because it used to be, but it’s crept up over the last few decades. The table below can help you find yours.
|
Birth Year |
Full Retirement Age (FRA) |
|---|---|
|
1943 to 1954 |
66 |
|
1955 |
66 and 2 months |
|
1956 |
66 and 4 months |
|
1957 |
66 and 6 months |
|
1958 |
66 and 8 months |
|
1959 |
66 and 10 months |
|
1960 and later |
67 |
Source: Social Security Administration.
This might be a little later than you were anticipating, but it could still be a good choice if you’re worried about claiming too early or too late. You will need to come up with a strategy to cover your living costs until you’re ready to sign up, though.
If you have a large nest egg, you may be able to live off personal savings until you’re ready to apply. Or you could remain in the workforce a little bit longer so you don’t have to drain your savings as quickly.
What if you don’t want to apply for Social Security at your FRA?
If waiting until your FRA feels like too long, it’s OK to apply for Social Security earlier. Just make sure you’re comfortable with the penalty you’ll face. Your checks will shrink by 5/9 of 1% per month for your first 36 months of early claiming, and then by 5/12 of 1% per month thereafter.
You could also create a my Social Security account to view your estimated monthly benefits at every claiming age. This helps you see how much you’ll gain from waiting to apply, so you can decide which claiming age makes the most sense for you.
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