2. Your Social Security Benefits Will Be Smaller

Do you want to retire early? Well, the sooner you start claiming your Social Security checks, the lower your benefits will be. For instance, if you were born in 1960 or later and you start receiving your retirement benefits at age 62, the earliest age at which you qualify for Social Security, your monthly benefits will be reduced by 30% compared to if you wait until your full retirement age. Also known as the normal retirement age or FRA, it varies depending on the year you were born.

For those born in 1960 or afterward, the FRA is 67. In other words, if you decide to retire early, you’ll get smaller checks. Postpone claiming your Social Security, and for each year you do that from age 67 to 70, you’ll get an extra 8% in your monthly check. After age 70, there are no benefits to delaying.