3. Early filing
One of the reasons for reduced Social Security benefits that is quite popular is claiming those benefits early. If you were born in 1960 or later, the Social Security Administration says that the full retirement age is 67. Of course, you could definitely claim those benefits as early as age 62 if you need them, but if you decide to do this, you have to know that you’ll permanently reduce your benefits by 30%.
What I’m saying is that if you’re entitled to receive a monthly benefit of $1,700 at age 67 and you decide to claim your benefits at the age of 62, this might be one of the most important reasons for reduced Social Security benefits. In this case, you’ll only receive $1,190 per month, and the difference is quite high, so you have to be very sure that this is what you want.
On the other hand, other experts say that you don’t need to be so certain about the time you claim your benefits because if you do it at 62, you’ll receive 60 extra monthly payments over the course of your life. So you might end up having more money or not on a monthly basis.
But what we do know for sure is that claiming your benefits early is one of the reasons for reduced Social Security benefits as long as you live. So, when do you think it’s the right time to file?
