3 Times You'll Regret Claiming Social Security Early
When it comes to signing up for Social Security, you get a choice. You can opt to take benefits at full retirement age (FRA), which is when you get your complete monthly benefit based on your wage history, or you can sign up at an earlier or later age.
If you delay your filing beyond FRA, your Social Security benefits will increase on a permanent basis. But if you sign up before FRA, your benefits will be permanently reduced.
The extent of that reduction will depend on how early you sign up. The soonest you can file for Social Security is age 62, and if you go that route, you'll be looking at a 25% to 30% reduction in benefits, depending on your exact FRA. If you sign up for benefits at age 65, you'll be looking at a smaller reduction -- more like 6.67% to 13.34%, depending on your FRA.
Source Fool.com
