It is not limited to either extreme.
Social Security Disability Doesn’t Always Last Forever: What Recipients Need to Know
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You know your age is important when signing up for Social Security, but it’s easy to get stuck in analysis paralysis when considering your options in detail. If you assert yourself too soon, you can permanently short-circuit yourself. If you claim too late, you risk receiving nothing, but your family may get more after you’re gone.
Rather than take on either extreme risk, you may choose to enroll when you reach your retirement age (FRA). But this may not be the time you’re thinking.
Why signing up for FRA is the perfect middle ground
FRA is the age at which you are eligible to receive the full amount of Social Security benefits you have earned based on your work history. If you enroll in that case, you won’t receive delayed retirement benefits that increase your benefits, but you won’t lose money by reducing your benefits by claiming early.
Some people think the FRA is 65 because that’s how it used to be, but it’s been creeping up in recent decades. The table below will help you find what you are looking for.
Source: Social Security Administration.
This might be a little slower than you expected, but it can still be a good choice if you’re worried about being billed too early or too late. However, you will need to develop a strategy to cover your living expenses until you are ready to enroll.
If you have a large nest egg, you may be able to live off your personal savings until you are ready to apply. Or you can continue working a little longer so you don’t have to dip into your savings right away.
What if I don’t want to claim Social Security at FRA?
If you feel it’s too long to wait to get your FRA, it doesn’t hurt to file for Social Security early. Make sure you are happy with the penalties you face. Checks will be reduced by 5/9 of 1% per month for the first 36 months after early billing, and 5/12 of 1% per month thereafter.
You can also create a My Social Security Account to see your estimated monthly benefit amount by your claiming age. This will allow you to see how much you’ll benefit from waiting to apply, so you can decide which filing age makes the most sense for you.
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