Retirement Benefits Reduced for Early Recipients
Starting Social Security Benefits Before Full Retirement Age
Earned Credits and Reduced Benefits Explained
Individuals who choose to start receiving their Social Security retirement benefits before reaching the full retirement age will face a reduction in their monthly benefit amount. This is because the Social Security Administration (SSA) calculates benefits based on the age at which they are first claimed.
The earliest age at which a person can start receiving Social Security retirement benefits is 62. However, the full retirement age, which is the age at which individuals are eligible for unreduced benefits, varies depending on the year of birth. Currently, the full retirement age for people born in 1960 or later is 67 and will gradually increase to 69 for those born in 1960 or later.
Individuals who claim benefits before reaching full retirement age will receive a permanently reduced amount. The reduction percentage depends on how many months early they start receiving benefits. For example, someone born in 1960 who claims benefits at age 62 will receive approximately 30% less than their full retirement benefit amount.
It is important to note that the SSA provides a way to estimate the reduction in benefits based on the age at which individuals start receiving them. Individuals can use the SSA's online calculator or contact their local Social Security office for personalized information.
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