When Is Delaying Social Security a Bad Idea?
Social Security serves as a financial lifeline for millions of retired seniors, and if you want your benefits to do the same once you're no longer working, then you'll need to claim them at the right time. Although those benefits are based on the amount of money you earn during your top 35 working years, the amount you collect each month from Social Security will hinge on your filing age.
You're entitled to your full monthly benefit, based on your earnings record, once you reach full retirement age, or FRA. That age is either 66, 67, or 66 and a specific number of months -- it all depends on your year of birth.
But you're allowed to file for benefits before or after FRA. The earliest age to file is 62, but for each month you claim Social Security ahead of FRA, your benefits get reduced on a lifelong basis. On the flipside, you can delay benefits past FRA and accumulate special credits that boost those payments by 8% a year, up until you turn 70.
Source Fool.com
