"Social Security's FRA used to be 65, but lawmakers pushed it up decades ago to improve the program's solvency. Many recent retirees may have been able to claim their Social Security benefits in full at 66. But for those turning 66 in 2026, FRA will not arrive until 67. If you were born in 1960 and are turning 66 next year, claiming Social Security could mean reducing your benefits by up to 6.67%, depending on exactly when you file."
"If your FRA is 67 and you sign up for Social Security at 62, you'll reduce your monthly payments by about 30% for life. That's a pretty significant hit. However, in some situations, claiming Social Security before reaching FRA makes sense. It could pay to claim benefits early if you do not expect to live a long life and want to get more total income out of Social Security."
Full Retirement Age (FRA) will rise to 67 in 2026 for people born in 1960, shifting when retirees can claim full Social Security benefits. FRA previously moved from 65 to 66 to bolster program solvency, and the next increase will delay full benefits for some claimants. Claiming before FRA permanently reduces monthly payments; someone filing at 66 in 2026 could face a reduction up to 6.67% depending on filing date. The earliest eligible age is 62, which can cut payments by about 30% if FRA is 67. Early claiming can still make sense for limited life expectancy, job loss, lack of other income, or a desire to use funds earlier, while waiting avoids permanent reductions.
Read at 24/7 Wall St.
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