"Similarly, once you get older, you'll need to decide when to start getting Social Security benefits. The earliest age you can file for them is 62. However, you're not eligible for your complete Social Security benefit each month until full retirement age (FRA) arrives, which is 67 for anyone born in 1960 or later. If your FRA is 67 and you claim Social Security at 62, you'll reduce your monthly benefits by about 30% for the rest of your life."
"Claiming Social Security at 62 can be risky, because if you don't have a lot of savings to supplement your benefits, you could end up short on income. However, Ramsey thinks it makes the most sense to claim Social Security as soon as possible because, as he puts, it, "Your retirement payments die when you die...so you might as well take the money and make the most of it while you can.""
"What Ramsey means is that if you don't end up living a long life, you can get the most money out of Social Security by signing up for benefits at 62. And even if you end up living an average lifespan, at 62, you can't predict whether that will happen. For this reason, Ramsey is a fan of taking the mon"
Social Security benefits can be claimed as early as age 62, but full retirement age (FRA) is 67 for those born in 1960 or later. Claiming at 62 reduces monthly benefits by about 30% compared with FRA, while delaying claims past FRA up to age 70 increases benefits roughly 8% per year permanently. Claiming early provides immediate income that can yield higher total lifetime receipts for people with shorter lifespans, but it poses income risk for retirees with limited savings. The tradeoff requires weighing immediate needs against potentially larger monthly payments later in life.
Read at 24/7 Wall St.
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