Summary
Most Americans risk a costly Social Security mistake by claiming benefits too early. Many people misunderstand their full retirement age (FRA) and file for benefits before it, which permanently reduces their monthly checks. The Social Security Administration applies a 5/9% monthly penalty (up to 36 months) for early claims and 5/12% for further months, eroding benefits. Claiming at 62 instead of waiting to 67 can shrink checks by 30 %. Meanwhile, delaying benefits beyond FRA boosts monthly payments by about 8 % annually until age 70. To maximize lifetime benefits, people should time claims carefully.
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