When to Claim Social Security Benefits
If you are planning for retirement, claiming social security benefits can be complicated. You can claim as early as 62 years old or as late as 70 years old. However, the monthly benefit amount will vary depending on when you claim. Here are the pros and cons of claiming at different stages in retirement:
Claim before full retirement: According to a nolo.com article, about half of retirees claim benefits at age 62 (referred to as “early retirement”). If you claim before full retirement, you could receive a maximum reduction of up to 25% on monthly benefits. And those born after 1959, could receive up to a 30% reduction.
Claim at full retirement: If you claim at full retirement, your monthly benefits are not reduced but you are given an incentive to wait (see below).
Claim after full retirement: If you wait until after full retirement (age 70) to claim benefits, you will receive an increase in monthly payments. However, there is no additional incentive to wait after the age of 70.
If you are curious when you reach full retirement, check out this Social Security Age Calculator.