That’s why it’s so important to learn your FRA. Knowing that number could spare you from making a very poor choice.
Does it ever make sense to file early?
Of course. For some people, claiming benefits ahead of FRA absolutely pays.
If your health is very poor, for example, and you don’t expect to live a very long life, then it makes sense to start collecting benefits as soon as you’re eligible for them. Doing so could result in a higher lifetime payout despite slashing your benefit on a monthly basis.
The point, however, is that before you land on any Social Security filing age, you should know what your FRA looks like. Having that information will put you in a better position to make the right call — and avoid what could potentially be a lifetime of regret.
It’s also worth noting that for each year you delay your Social Security filing beyond FRA, your benefit increases by 8%. And that increase lasts on a permanent basis.
Once you reach age 70, you can no longer grow your benefit. But just as it can definitely pay to claim Social Security early, so too can waiting end up being a very smart decision.
The $18,984 Social Security bonus most retirees completely overlook