"When it comes to Social Security, recipients have choices as to when to file. The earliest age to claim benefits is 62. But anyone wanting their monthly benefits without a reduction will need to wait until full retirement age (FRA), which is 67 for people born in 1960 or later. It could also pay to delay Social Security past FRA. Each year that happens boosts benefits by 8%, up until age 70."
"Ramsey's logic is twofold. First, he figures that since people only get to collect Social Security for as long as they're alive, filing early could, for a lot of people, mean locking in a larger number of monthly checks and therefore a larger lifetime benefit. Ramsey also suggests that Social Security claimants take benefits at 62 and invest the money. That way, they can grow it into a larger sum."
Recipients can choose when to file for Social Security, with the earliest eligibility at age 62 and full retirement age (FRA) at 67 for people born in 1960 or later. Delaying benefits past FRA increases monthly payments by about 8% each year up to age 70. One recommended approach is to claim benefits at 62 and invest the checks, aiming to lock in a larger number of monthly payments and to grow the proceeds through investment. Many retirees, however, enter retirement with little or no savings and therefore cannot afford to invest checks because they need the money to cover living expenses. Age 62 remains the most popular filing choice.
Read at 24/7 Wall St.
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