This Seemingly Flawless Social Security Strategy Could Backfire on You
Many seniors rely on Social Security to provide a fair chunk of their retirement income. And there's a good chance you'll eventually do the same. As such, it's important to get as much money out of the program as you can.
Now you'll often hear that a guaranteed way to snag a higher monthly benefit is to file for Social Security after full retirement age, or FRA. FRA is when you can collect the monthly benefit you're entitled to based on your earnings history. If you were born in 1960 or later, FRA kicks in at 67.
Of course, many seniors rush to claim their benefits ahead of FRA -- you can do so starting at age 62 -- and shrink those monthly payments in the process. But for each month you delay your filing beyond FRA, your benefit will increase by about 2/3 of 1%. Or, to put it another way, for each year you delay your filing, your benefits will grow by 8%.
Source Fool.com
