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Do You Plan to Claim Social Security at 67? Think Twice

It’s not strange for people to aim to sign up for Social Security when they’re 67.

Those born in 1960 or later reach full retirement age (FRA) at age 67.

By not filing until your FRA date, you will be eligible for the full amount of benefits you deserve based on your past earnings.

Even though it may be a good idea to file for Social Security at 67, it may not work out that way.

Possibly you will need to begin collecting benefits sooner than you expected.

Alternatively, you might decide to enroll later due to financial concerns.

When You are Under 67, You Might Have to File

Several years ago, the Employee Benefit Research Institute conducted a study that revealed 48% of workers retire sooner than expected.

According to fool, Health issues, layoffs, or other circumstances may force an individual into early retirement.

In either case, it is possible to file for Social Security before age 67 if your income situation deteriorates and you need that money to survive.

Remember, however, that for every month you sign up for benefits before FRA, they will be permanently reduced.

A person can sign up for Social Security as early as age 62.

Your benefits will be hit by 30% if you file as early as possible and your FRA is 67.

It is for this reason that a 401(k) or IRA is a good choice for saving aggressively for retirement.

You may be able to avoid financial hardship if you become a claimant earlier than anticipated if you have more income available.

Read More: Are You Going Through a Divorce? You Can Still Collect a Certain Percentage of Social Security Benefits for an Ex-spouse

After Age 67, You May Need to File

If you are planning to retire at 67, you may want to save as much as you can for retirement and then take your benefits that way.

How do you handle a situation where your nest egg isn’t in great shape after you reach your FRA of 67?

You might have done that because you didn’t invest enough money into it when you were working.

Maybe your retirement plan didn’t grow as much as you would have liked because you invested too conservatively.

You may need to delay your Social Security claim if, come 67, you find that you will be more dependent on Social Security than expected in retirement.

If you delay filing past FRA by two-thirds of a month, your benefits will increase by 1%.

If you wait one year to file, your income will increase by 8%, and if you wait until you turn 70, your income will increase by 24%.

Note, Social Security benefits will no longer increase once you turn 70.

However, it could be beneficial to file at 67 instead of waiting until then.

Be Flexible In Your Approach

Social Security can be claimed at 67 without any problems.

However, you should be aware of the possible reasons why this might not work out and be prepared to adapt your plans.

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