Suze Orman said if you do this, you'll take a "costly cut" to Social Security benefits

"As she explained, full retirement age (FRA) for most people is between the ages of 66 and 67, with the specifics depending on the year when you were born. You can collect the full standard benefit you are entitled to receive from this entitlement program if you wait to start benefits until your FRA. That standard benefit is based on average wages over the 35 years of your career when your inflation-adjusted income was the highest."

"However, many people start their checks as soon as they can, even though that's well before FRA. Orman said that doing this would lead to a "costly cut," and she's right. You are hit with early filing penalties if you claim benefits ahead of your FRA. Those are equal to 5/9 of 1% per month for each of the first 36 months, and to 5/12 of 1% for any prior month you claim benefits."

Full retirement age (FRA) for most people is between 66 and 67, depending on birth year. The full standard Social Security benefit is based on the 35 years of career wages with the highest inflation-adjusted income. Benefits can be claimed as early as age 62, but early filing triggers permanent reductions. Early filing penalties equal 5/9 of 1% per month for each of the first 36 months and 5/12 of 1% for any additional month claimed before FRA. Claiming at 62 instead of FRA 67 can reduce benefits by about 30%, leaving roughly 70% of the standard benefit. Many people still begin claiming before FRA despite these cuts.

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