The Cost Of Claiming Benefits Early
If you claim benefits before your full retirement age (FRA), you incur a penalty: your benefits are reduced. The annual reduction pattern for those born between 1943 and 1954 is the following:
Reductions in Full Retirement Age Benefit from Claiming Early
| Age of Claim | Benefit Reduction | Example: $1000 Full Monthly Benefit |
|---|---|---|
| 62 | -25% | $750 |
| 63 | -20% | $800 |
| 64 | -13.33% | $866.67 |
| 65 | -6.67% | $933.33 |
The majority of Social Security claimants take their benefits early, and for many, it is the wrong decision. Order a custom benefit analysis to learn how claiming benefits early will impact you.