It is difficult to understand social security as it is confusing & complex. There is a large number of factors to be considered before claiming the benefits of social security. Age, retirement plan, monthly checks, etc. this is some factors that are important for getting benefits of social security. Though it is confusing, everyone should understand the benefits of social security. Most retired people end up depending on their benefits for a decent chunk of their retirement income. So any mistake you make could have a substantial effect on your future. And there’s one common error that new study shows could lead to immense regrets down the road. The phase of age at which you start demanding benefits will affect your money every month throughout life. The only way to get full benefits is to claim your entire retirement age (FRA) for those born in the year 1960 or later, 67 years old, or for those born 66 or 66 and a few months before 1960.
Anyone can claim before your FRA (as anyone turns 62), but your monthly benefits amount will be reduced to 67K FRA will see a 30% reduction in your benefits if they claim at 62. So On the other hand, if you wait until your FRA is claimed, you get more than your extra money each month – if you have an FRA of 67 and you claim at the age of 70 If you do, you can get up to 24% more. Additional benefits at age 70; however, you can claim after that age, there is no financial incentive to do so. However, life does not always work out well, and new research suggests that making early claims can lead to more financial struggles in life. Claiming benefits at the age of 62 is associated with a greater likelihood of living in poverty later in life, a National Bureau of Economic Research report said. This does not mean that claiming initial benefits is always a bad decision or that a person will struggle financially if you claim at the age of 62. Occasionally, this can be a great choice. But in other instances, it can be a big mistake.
According to a research study performed from the Center for Retirement Research at Boston College. 42% of men and 48% of women claim their social security benefits at the age of 62%. But if someone lives longer than an average life span, then claiming at the age of 70 will give 10 thousand dollars’ additional benefit. So everyone should try to understand the right age of claiming social security benefits. So everyone can enjoy golden days of retirement happily.