#2 Reason: Early Benefits Could Affect Your Social Security Check
As we already mentioned, for most Americans who want to retire, the full retirement age is currently 66 or 67, depending in what year they were born (1955 or 1960). However, it is possible to get Social Security retirement benefits as early as age 62.
While this could be a great option for those who need an extra income fast, they will probably regret it in the long run, because the size of those benefits will automatically go down. The worst part? It is permanent!
A 2019 survey of 1,315 U.S. adults aged 50 or older by the Nationwide Retirement Institute (NRI), a subsidiary of the Nationwide Mutual Insurance Company, found that 25 percent of future retirees say they plan to apply for benefits early.
The survey also found that 89 percent of recent retirees and 97 percent of older retirees who retired a decade or more ago started receiving benefits at age 62. In that same study, 24 percent of current retirees said their Social Security check was smaller than they anticipated.
Okay, but how much can getting Social Security benefits early really cost you? Let’s imagine this scenario: Your normal retirement age is 67, but you want and ultimately decide to apply for Social Security when you turn 62.
Because you’re actually taking benefits for five years (60 months), your Social Security check would be minimized by 30 percent. In other words, if you are entitled to let’s say $1,000 a month, you would only receive $700. Think about it! Are you willing to give up to $300?
