If you're turning 66 next year, you may be thinking about claiming Social Security in 2024. This may be on your radar because you've probably heard that 66 is when you can get your standard benefit without being subject to early filing penalties.
Don't jump into claiming benefits right away, though. There are two key things that you need to know to help you decide if starting Social Security is the right choice for you.
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Be sure you know your full retirement age
The first thing to know before you claim benefits is that your full retirement age (FRA) is not going to be right when you turn 66 -- and you aren't going to have the same FRA as your friends who retired in recent years. See, the age when you can claim your standard benefit has been gradually moving higher.
For anyone who turned 66 in 2023, FRA was 66 and six months. But if you aren't going to hit this milestone until 2024, your full retirement age is 66 and 8 months.
If you claim benefits even one month prior to your FRA, your benefit will be reduced by 5/9 of 1% per month for each of the first 36 months and by 5/12 of 1% for any month before that. If you don't want to see your Social Security checks shrink at all, you'll have to wait until you've reached 66 and eight months old to get your first payment.
Don't just assume you can start your checks right at the start of 2024 just because you're going to be 66 at some point during the year.
You can still increase your check even after you've hit full retirement age
If you'll turn 66 and eight months old in 2024, does that mean you should get your first Social Security payment then if you haven't already? Not necessarily.
You don't have to just settle for your standard benefit. If you wait beyond reaching FRA, your retirement benefits will increase by 2/3 of 1% per month for each month you don't get a payment. You can continue to earn these delayed filing credits up until your 70th birthday, and your monthly Social Security benefit will increase every single month you put off your claim. Bear in mind, this increase doesn't apply to spousal benefits -- only to retirement benefits based on your own work history.
However, think carefully about whether getting benefits right at 66 and eight months is the best choice for you, given your life goals and your projected life expectancy.
If you want to enjoy your money during your younger retirement years or if you're worried you won't live long (and aren't concerned about maximizing survivor benefits for your spouse), you may be better off claiming as soon as you can. However, if your goal is to maximize monthly benefits and you can afford to wait beyond 66 and eight months, you may want to increase your future Social Security checks by delaying claiming a bit longer.
Ultimately, the important thing is that you don't just claim benefits by default because you've turned 66 and Social Security says your standard benefit is becoming available. It's worth taking the time to research what's right for you as Social Security is going to play a very important role in your retirement for many years to come.
