Claiming Social Safety advantages is an thrilling step in your retirement journey, particularly in the event you’re retiring on the identical time. It is extra essential than ever, although, to make sure you’ve deliberate sufficient for this essential milestone.
Generally, even minor misconceptions can have a serious affect in your funds in retirement, and there is one Social Safety misunderstanding that journeys up practically 80% of U.S. adults. Earlier than you start claiming advantages, there’s one factor you completely have to do: double-check your full retirement age.
Your full retirement age (FRA) is the age at which you may obtain 100% of the profit you’ve got earned based mostly in your work historical past. In accordance with a 2025 survey from the Nationwide Retirement Institute, although, solely 21% of U.S. adults can appropriately identify their FRA.
When you’re among the many practically 80% who’re not sure of their FRA, you are in good firm. However not figuring out this determine can have an effect on your month-to-month cost for the remainder of your life.
The typical child boomer believes their FRA is 66 years previous, the Nationwide survey discovered. Amongst Gen Xers, the common FRA estimate is 65 years previous. Whereas some retirees’ FRA is 66, it is truly age 67 for everybody born in 1960 or later. Whereas that will seem to be an insignificant distinction, it could have an effect on your profit quantity.
Claiming earlier than your FRA will lead to everlasting profit reductions. So in the event you file at age 66 considering it is your FRA, you may anticipate to obtain your full profit quantity. But when your FRA is definitely 67, claiming a 12 months early will scale back your funds by 6.7%.
When you could be incomes, say, $2,000 per 30 days at your FRA, a 6.7% deduction would cut back your funds by $134 per 30 days, or $1,608 per 12 months. These reductions are usually everlasting, too. So in the event you file early, anticipate to obtain smaller checks for the remainder of your life.
This is not to say that submitting for Social Safety early is unsuitable. In some circumstances, it may be the best-case state of affairs. But it surely’s essential to know if you’re submitting early so you’ll be able to put together for the ensuing profit reductions. When you by accident file early since you had been not sure of your FRA, chances are you’ll obtain smaller-than-expected checks.
