When Janet claimed Social Security at age 62, she locked in a permanent reduction in her monthly benefit. For someone born after 1960, claiming at 62 means a reduction of about 30% compared to the benefit she would receive if she waited until her full retirement age (FRA), which for Janet is 67. This reduction is permanent, meaning she'll continue receiving the lower amount for the rest of her life.
If Janet had waited until her FRA of 67, she would have received her full Social Security benefit. No reductions would have been applied, and she would have received 100% of what she's entitled to based on her earnings history.
Had Janet waited until age 70 to claim, she would have earned delayed retirement credits, increasing her benefit by 8% per year beyond her FRA, up to a maximum of 24% more at age 70.
#social-security #retirement-planning #financial-decision-making #claiming-benefits #age-focused-strategies
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