Note: People born on January 1 of any year, refer to the previous year.
What happens if you claim Social Security before FRA?
While you can start claiming Social Security benefits as early as age 62, doing so will result in reduced monthly payments. The reduction is based on how many months before your FRA you start claiming.
Here’s a breakdown of the reduction percentages if you claim early:
- At age 62: Your benefit will be reduced by approximately 30%.
- At age 63: Your benefit will be reduced by approximately 25%.
- At age 64: Your benefit will be reduced by approximately 20%.
- At age 65: Your benefit will be reduced by approximately 13.3%.
- At age 66: Your benefit will be reduced by approximately 6.7%.
For example, if your FRA is 66 years and 10 months, and you start claiming at 62, you could see a significant reduction in your monthly payments compared to waiting until your FRA.
How much more can you get if you wait to claim?
Delaying your Social Security benefits beyond your FRA can increase your monthly benefits. For every year you wait to claim after your FRA, your benefit increases by approximately 8% per year until age 70.
For example, if your FRA is 66 years and 10 months, and you wait until age 70 to claim, your benefit could increase by over 30% compared to claiming at your FRA. This increase can significantly boost your retirement income, especially if you anticipate living a longer life.
Want to see how much your benefits might increase or decrease based on when you start claiming? Use the Social Security calculator to estimate your benefits.
Should you claim early or wait until FRA?
Deciding when to claim Social Security benefits is a personal decision that depends on several factors:
- Life Expectancy: If you have a family history of longevity, waiting to claim may be more beneficial.
- Health Status: If you have health concerns or a shorter life expectancy, claiming earlier might make sense.
- Financial Needs: If you need the income sooner to cover expenses, claiming early could be necessary.
- Employment Status: If you’re still working, you may want to delay claiming to avoid reductions due to income limits.
For many individuals, waiting until their FRA or beyond can result in higher monthly payments, but it’s essential to assess your personal situation to make the best choice. Always consult with a tax advisor or financial professional.
Plan ahead
The 2025 increase in the full retirement age is an important change for individuals born in 1959. Understanding your FRA and the impact of claiming benefits early or delaying can help you maximize your retirement income.
