"If you file for Social Security at your full retirement age (FRA), which is 67 for anyone born in 1960 or later, you'll get your precise monthly benefit based on your earnings history without a boost or reduction. However, you have many other choices. The earliest age to claim Social Security is 62. Filing at that point will reduce your monthly benefits by about 30% compared to an FRA of 67."
"Dave Ramsey thinks 62 is the best age to sign up for Social Security. The reason is that the earlier in life you start collecting that money, the more individual payments you're apt to get. Plus, Ramsey's logic is that if you invest your Social Security benefits rather than spend them, you can more than make up for the reduction that comes with filing early."
Social Security claiming age significantly affects monthly and lifetime income. Full retirement age (FRA) is 67 for those born in 1960 or later, yielding the benefit calculated from earnings without adjustment. Claiming as early as 62 cuts monthly payments by roughly 30% versus FRA. Delaying claims past FRA increases benefits about 8% per year up to age 70, yielding up to a 24% boost with an FRA of 67. One expert recommends claiming at 62 to maximize the number of payments and investing benefits to offset reductions. Another expert recommends waiting until 70 to secure maximum monthly income to compensate for limited retirement savings and provide larger guaranteed income.
Read at 24/7 Wall St.
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