"According to the National Bureau of Economic Research, an estimated 89.8% of Americans make a decision about Social Security that costs them a lot of money. That mistake is claiming Social Security before the age of 70. Social Security benefits become available at 62, but claiming any time before your full retirement age (FRA) is considered an early claim. For anyone born in 1960 or later, FRA is 67."
"Waiting until 67 allows you to avoid shrinking your monthly check due to early filing penalties. However, even delaying that long is likely not long enough, as waiting beyond your full retirement age allows you to increase your monthly payments until the age of 70. The problem is, just 10.2% of Americans actually put off their claim until 70. And, anyone who doesn't wait not only shrinks the payments they collect each month, but they also are most likely leaving hundreds of thousands of dollars of lifetime benefits on the table."
Most retirees claim Social Security before age 70, which often reduces lifetime benefits. Benefits begin at 62, but claiming before full retirement age (FRA) causes permanent reductions. For those born in 1960 or later, FRA is 67. Waiting past FRA increases monthly payments up to age 70, boosting lifetime income. Research indicates roughly 89.8% of Americans make a decision that costs them money, while only 10.2% delay until 70. Early claiming can shrink monthly checks and leave substantial lifetime benefits unclaimed. Delaying to 70 maximizes benefits for many, though individual circumstances can justify earlier claiming.
Read at 24/7 Wall St.
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