Thinking of Claiming Social Security During COVID-19? 4 Things You Need to Know

The COVID-19 crisis has upended so many Americans' lives from a financial standpoint, and that includes older workers who are grappling with unemployment and income loss. If the pandemic has caused you to contemplate claiming Social Security, you're probably not alone. Those benefits are a good way to secure income at a time when you need it. But here are a few things you must know before you sign up.

You're entitled to your full monthly Social Security benefit based on your earnings history once you reach full retirement age, or FRA. Your FRA hinges on your year of birth, and it's either 66, 67, or somewhere in between. If you haven't yet reached FRA but are at least 62, you can sign up for Social Security to get your hands on the income you might need immediately to cover your expenses. But filing early comes at a cost. For each month you claim benefits ahead of FRA, they're reduced on a permanent basis, so while signing up for Social Security may be a good way to improve your cash flow immediately, it will also have long-term repercussions.

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Source Fool.com