"The age you decide to begin drawing Social Security has a huge impact on your monthly income in retirement. The earliest you can draw Social Security is 62, but you can continue waiting until 70 for maximum benefits. Which one is best? That's exactly what we'll dive into below. There are trade-offs to both options, and one isn't necessarily better than the other. It depends on your specific situation. We'll use our expert knowledge of Social Security to help you sift through your options."
"If you draw as early as possible, your benefits will be reduced by about 25-30%. Why the range? It depends on when your FRA is. If your FRA is closer to 67, the deduction will be closer to 30%. What the SSA is about is how many months you're drawing before FRA. This reduction is permanent. It doesn't go up after you reach your FRA. It remains permanently reduced."
Social Security benefits are determined by lifetime earnings (the 35 highest-earning years, inflation-adjusted) and the age at which benefits begin relative to Full Retirement Age (FRA). FRA typically falls between 66 and 67 depending on birth year. Claiming at 62 results in a permanent reduction of roughly 25–30% compared with claiming at FRA, with larger reductions when FRA is later. Claiming after FRA increases monthly benefits up to age 70. Early claiming provides immediate income and may suit those retiring early, needing cash flow, or with limited life expectancy. Optimal timing depends on earnings history, longevity expectations, and financial needs.
Read at 24/7 Wall St.
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