D:Did you know that Social Security sets a certain age when you can receive your standard benefit? This special age is called your full retirement age (FRA). Depending on when you were born, the FRA is 66 to 2 months և 67 years old.
Unfortunately, if you do not know what your FRA is, you may end up losing money, otherwise you will be able to count on it as a pensioner. Here are two possible ways in which this can happen.
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1. You can claim benefits at the wrong time
Application to FRA. Knowing your full retirement age allows you to get your primary insurance premium. Your primary insurance amount is a monthly benefit calculated on the basis of your 35 years of maximum earnings from inflation.
Apply before FRA. However, you do not need to claim pension benefits in the FRA. Some retirees decide that it makes more financial sense to start their benefits earlier. Checks can start as early as 62. However, the benefit reduction applies to early claimants as benefits are reduced for each month submitted before the FRA.
Demand after FRA. Other retirees may find it better to wait until they reach full retirement age. This can be a cost-effective decision, as late paperwork increases benefits, with benefits increasing every month when you defer until you are 70 years old.
If you know when your FRA is, you can understand whether your choice of benefit claim over a period of time will result in your standard benefit being reduced or increased. With this knowledge, you can decide whether you prefer to receive smaller checks earlier or larger checks later.
You can also calculate how much money you will receive from each age requirement, how long it will take you to break even for a delayed claim, and see which decision is best for your health և family goals.
2. You can unknowingly lose checks by working too hard
There is one major reason you need to know what your full retirement age is. If you claim benefits before you reach your FRA and then decide to return to work, you may find that some of your monthly Social Security checks never come.
This is because early accountants are only allowed to earn up to a certain amount of money before their benefit checks are reduced. If you do not know when your FRA և you start getting paid, it can be a financial shock when you find that you are being deprived of your benefits և you do not have as much income as expected.
If you miss out on Social Security checks because you work before FRA and earn too much, the amount of those lost checks will not go away forever. Your benefit amount is recalculated in FRA based on the number of months you have not received payments, արդյունքում as a result, your monthly benefit increases slightly. But the increase is small, it takes time to make up for lost checks.
You do not want to be frustrated if you cannot get the right pitch so invest in a good capo. So before you start your retirement benefits, make sure you know what your full retirement age is and what it means for your Social Security income.
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