"See, you have a standard Social Security benefit that is calculated using a formula based on your average wages in the 35 years when you earned the most. You receive a percentage of your average wages, after indexing them to inflation. But you get this standard benefit only if you sign up to have your first Social Security check come at exactly your FRA. And, you don't have to claim at your FRA as you can start benefits any time between 62 and 70."
"A claim before FRA means your monthly benefit shrinks for the rest of your life, while a claim after FRA results in an increase to your benefit that also lasts for life. So, the stakes are high as you decide when to claim benefits relative to when your FRA is. Unfortunately, FRA has changed, and many Americans don't know it or when their own FRA is."
Social Security provides critical retirement income but many workers overlook its rules and complexities. Full Retirement Age (FRA) changed in 2025 and will change again in 2026, affecting those claiming benefits now and in coming years. Only 13% of adults know their FRA according to Nationwide. Standard benefits are based on the 35 highest-earning years, indexed for inflation, and apply when benefits start at FRA. Benefits can be claimed between ages 62 and 70; claiming before FRA permanently reduces monthly payments while claiming after FRA permanently increases them. Lack of FRA awareness can lead to suboptimal claiming choices.
Read at 24/7 Wall St.
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