3 Reasons to Claim Social Security Benefits Early
The age at which you sign up to collect Social Security will determine how much money you're entitled to each month. Your initial monthly benefit is calculated based on your earnings during your 35 highest-paid years on the job, but once that benefit is established, you have the power to raise it, reduce it, or keep it where it is.
If you file for Social Security at your precise full retirement age, or FRA, you'll get the exact monthly benefit your earnings history entitles you to. (FRA is either 66, 67, or 66 and a certain number of months.) Meanwhile, you can claim Social Security ahead of FRA for a reduced benefit starting at age 62 or delay your filing past FRA and grow your benefits by 8% a year, up until the age of 70.
From a cash flow perspective, filing for Social Security on time or beyond FRA makes the most sense. That way, you don't face a reduction in your monthly benefit. But depending on your job situation, it could pay to file for benefits sooner. In fact, here are three job-related reasons it pays to sign up for Social Security ahead of FRA and take that monthly hit.
Source Fool.com
