Today's Money Story Let's talk about the 'claim early' trap. It's the most common Social Security mistake we see, and it's completely understandable. You turn 62, the checks are available, and you think: bird in hand, right? Here's what that bird actually costs you. If your full retirement age (FRA) is 67 and you claim at 62, your benefit gets permanently slashed by up to 30%. Not temporarily. Permanently. For every year you wait past your FRA up to age 70, your benefit grows by 8% — guaranteed, by the federal government. You will not find an 8% risk-free annual return anywhere else on planet Earth. Run the numbers on a $2,000/month benefit at FRA: claim at 62 and you're getting roughly $1,400. Wait until 70 and you're pocketing $2,480. That's a $1,080 per month difference. Over a 20-year retirement? We're talking $259,200. Now, this isn't one-size-fits-all. Health, a spouse's benefit, and whether you need the income NOW all matter. But too many people claim early on autopilot — not out of necessity, but out of habit or anxiety. Takeaway: Before you file for Social Security, run a break-even analysis. Your coffee break this morning could be worth six figures. |