Why Claiming Social Security at Full Retirement Age Might Be Your Safest Choice | Smart Change: Personal Finance

That’s why it’s important to claim Social Security at the right age, and to that end, you get options. The earliest age you can sign up for Social Security is 62. And while there is technically no latest age for registration, there is no financial benefit to delaying registration after age 70.

But there are consequences that come with applying for benefits early and claiming benefits late. And if you prefer to play things safer, you may want to plan to sign up for Social Security at full retirement age (FRA).

FRA is not universal. It depends on your date of birth. It’s also the age at which you are entitled to your full monthly Social Security benefits based on your earnings history without a reduction. Check this table to see what your FRA is:

Data source: Social Security Administration.

When you claim Social Security before the FRA, your benefits are reduced. And filing at age 62 means your benefits are reduced by 25% to 30%, depending on your Human Resources Assessment Act. This is risky, because if you end up depleting your nest egg faster than expected, or your retirement living costs become higher than expected, you may need more income from Social Security to help compensate.

Likewise, there is a risk of delaying registration until after the FRA – as you will not end up living a life long enough to be your best financial move. See, delaying your claim will result in higher monthly interest. You will not necessarily score higher life The benefit, though. To get that, you’ll generally need to live a very long life, and if you die in your 70s, delaying your filing will generally mean you end up with less Social Security income.

This is why registering for benefits with the FRA may be your safest bet. This way, your benefits are not reduced, but you also don’t have to wait long to collect them. If you end up with health issues that shorten your life expectancy, you can at least take comfort in the fact that you haven’t waited so long to start receiving your benefits first.

Obviously, the decision to claim Social Security is not one to take lightly. You may be tempted to apply for benefits before the FRA to get your money back sooner. Or you may decide that delaying registration is the most financially sound option.

But both moves are potentially risky. That’s not to say any of this call is wrong, but make sure you know what you’re going to get before you sign up early or late. And if you don’t want to take the risks involved, consider registering with the FRA instead.

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