The Social Security Administration intends for all future retirees to claim benefits when they reach their full retirement age (or FRA) of 67 years old. But that’s not your only option. You can file for Social Security retirement benefits as early as 62 years of age. Just know that filing before you reach your FRA will cost you. How much it will cost you depends on how close you are to your FRA. The table below details the reduction of your monthly benefit payment compared to what you would have received by waiting.
| Claiming at Age… | …Reduces Your Benefit By: |
|---|---|
| 67 | No benefit reduction |
| 66 | 6.67% |
| 65 | 13.33% |
| 64 | 20% |
| 63 | 25% |
| 62 | 30% |
Data source: Social Security Administration.
You aren’t limited to claiming in your exact birth month, however. The reduction is fine-tuned to adjust for any number of months after reaching the aforementioned ages that you file. The Social Security Administration can supply you with the exact amount of your payment, if you’ve got a specific date in mind to claim your retirement benefits.
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By the way, postponing your benefits once you’ve reached your FRA adds to your monthly payment, and by quite a bit.
| Claiming at Age… | …Increases Your Benefit By: |
|---|---|
| 67 | No benefit increase |
| 68 | 8% |
| 69 | 16% |
| 70 | 24% |
Data source: Social Security Administration.
Again, you don’t necessarily need to wait a full 12 months after reaching your full retirement age to secure bigger payments. The increase is gradually improved for every month you wait after the month you reach your FRA. Specifically, if you’re going to claim in between your exact birth month for the years in which you reach these ages, add 0.66% per month to your expected payment for every month you wait.
Just for the record, there’s no additional upside in waiting beyond the month you turn 70 to claim. There’s good reason to file as soon as you do, in fact. The Social Security Administration will only pay you a maximum of six months’ worth of benefits missed because you didn’t claim when you turned 70.
