The age at which to begin receiving Social Security benefits is one of the most difficult financial decisions that retirees must make.
This is due to the fact that your decision directly impacts the amount of money you receive each month from the program.
Social Security Benefits Eligibility Age
62 years of age is the earliest eligibility age for Social Security. However, you are not eligible for what the program considers your full monthly benefit until you reach your FRA.
For those born in or after 1960, the age limit is 67. Your monthly payment amount will be reduced by a percentage if you file for benefits earlier, but you will receive a greater number of payments overall.
You can also delay your Social Security claim beyond your FRA to increase your benefits by 8% per year until age 70.
Filing Precisely At Fra Can Have Disadvantages
However, it is difficult to choose an age. And if you’re wondering if there is a recommended age at which people should begin receiving Social Security benefits, the answer is no.
You will frequently hear that it’s not a good idea to claim Social Security early (i.e., before your FRA), particularly if you have limited retirement savings. Despite the reduction in monthly benefits, filing for Social Security benefits early may be a prudent choice for some individuals.
In the end, however, there are pros and cons to every Social Security eligibility age. The disadvantage of filing at any age prior to FRA is a benefit reduction proportional to how early you file, while the advantage is receiving money sooner.
Delaying your application beyond your FRA increases your lifetime benefits. However, the drawback is having to wait longer to receive the cash. Moreover, if your life expectancy turns out to be shorter than average, you may receive less overall from the program if you wait than if you had not waited.
Filing exactly at your FRA may seem like a compromise solution. Even so, you may later regret that you could have received your money up to five years earlier or that you did not increase your benefits payments.
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