When should I take Social Security benefits?

Information courtesy of USAA Life Insurance Company and USAA Life Insurance Company of New York

As you decide which age is right for you to start receiving Social Security benefits, consider the following questions.

What's your full retirement age - FRA?

You can find it on page 2 of your Social Security statement, but those born from 1943 to 1954 reach their full retirement age, or FRA, at age 66.

What if I take benefits early?

Although you can claim your benefits starting at 62 — at any time during the year — they will be reduced because you're claiming Social Security benefits before 66.

Assuming your FRA benefit at 66 equals $1,000 per month, your benefit would decrease by:

• 25% to $750 at age 62.
• 20% to $800 at age 63.
• 13.5% to $866 at age 64.
• 6.6% to $933 at age 65.

Once you start receiving payments, you can only make changes within the first year.

What if I delay receiving my benefits until after my FRA?

Your amount will increase for each month you delay after your FRA, up to age 70. If you were born in or after 1943, you would receive an 8% increase for each year you delay.

Assuming again that your FRA benefit at age 66 equals $1,000 per month, your benefit would increase by:

• 8% to $1,080 at age 67.
• 16% to $1,160 at age 68.
• 24% to $1,240 at age 69.
• 32% to $1,320 at age 70.

Keep in mind that your Social Security benefits also generally increase with inflation, which helps you maintain spending power during retirement.

Your decision will depend on many factors, such as personal health, longevity and available financial resources — both for you and your survivor needs.

Start by knowing your Social Security estimated benefit at your FRA. You can do that by using the Social Security Administration benefits calculators.^{See note1}

For more information, visit the Social Security website. ^{See note1}