When Can You Start Collecting Social Security? Let's Break It Down!

I chat with folks about retirement almost every day, and one of the top questions I get is: "When can I start collecting Social Security?" On the official side, we call this "filing for Social Security" or "putting in your application."

For most people looking to file for Social Security retirement benefits, you can start as early as 62 or as late as 70, and anywhere in between. There's even a special provision that allows widowers to file as early as 60. But for this post, let's keep it simple and focus on basic retirement filing.

The Early Bird Gets... a Smaller Check?

Yes, you can start collecting benefits as early as 62, but should you? The decision on when to file for Social Security depends on your unique situation and can be quite the puzzle.

Here's the catch: the earlier you file, the smaller your monthly benefit will be. How much smaller? Well, that depends on how early you file. The Social Security Administration has a few different formulas to figure out the exact reduction, and trust me, the reduction can be significant. So, it's definitely worth doing some homework.

The Nitty-Gritty of Early Filing

If you file up to 36 months before your Full Retirement Age (FRA), your benefits are reduced by about 6.67% per year. File more than 36 months early, and the reduction is about 5% per year for those extra months. And if you're filing for spousal benefits, the reduction is even steeper.

So, What's the Best Move?

Deciding when to file for Social Security is a big decision and one that should be made with careful consideration of your personal circumstances. Whether you need the money sooner or can afford to wait for a bigger check, it's all about finding the right balance for you.