Planning your life after retirement can be one of the most important and strategic things you have to do in your entire life. As retirement is not only about age, it is about how to save and how much to save so that one can have a fulfilling life.
Those who are going to retire in a year or two are the most confused individuals as of now in the USA. Many are favoring retiring early and claiming the social security benefit before the FRA (Full Retirement Age). Is it worth retiring and claiming the amount early? Let’s find out.
Filing for Social Security Early
It has been seen that most of the retired personnel in the year 2023 had collected their social security checks before reaching the FRA. It is considered very important to decide the retirement age, as it will determine the benefit amount accordingly. Although most of the individuals believe that they want to claim the most of the social security, but end up claiming the least.
With that, the US has seen a jump in retirement, and with that, there is an increase in social security claimants. In 2025, there is a 13% jump compared to 2024. Many experts have analysed that with this jump and high inflation trends, the funds of social security may deplete even before it is predicted. Considering the current scenario of the country, it is best to make a thorough decision regarding filing early for Social Security.
Early Claim For Social Security Benefits: Overview
| Article on | Early Claim For Social Security Benefits |
| Country | USA |
| Department | Social Security Administration |
| Beneficiary | Senior Citizens, Retirees, Dependents |
| Category | Government Aid |
| Official website | ssa.gov |
Effects of Claiming the Benefits before FRA
One can claim their monthly social security benefits as soon as they turn 62, but if they do so, they will not be able to receive the full benefit amount. They can get only up to 70% of the amount they are actually eligible for. And the amount won’t increase; it will be locked, and the individual will receive the exact amount every month.
If a person waits for the full retirement age, then they would be receiving the full benefit amount, and if they wait up to 70 years, then they will receive the maximum benefit amount. This will be a boost in the income generated after retirement. The table below shows the age of retirement and the percentage of the amount gained accordingly.
| Age at which Social Security is Claimed | Percentage of the benefits received |
| 70 | 124% |
| 67 | 100% |
| 62 | 70% |
The Reasons Behind the Early Claiming of Social Security
There are several factors behind the early filing for social security benefits, such as
- The wave of retirement in the baby boomer generation has made people worried about their benefit amount. Also, the SSA is now under pressure as the funds are facing sudden depletion because of the increasing number of retirees.
- High inflation trend and the cost of living are making people claim the benefits as soon as possible. People are losing their savings on basic amenities way before they had initially planned.
- As the government is not making any promising amendments regarding the funds of social security, Americans are becoming a concerned about their future payments.
- Many people are concerned about their health, and to provide for expensive medical facilities, people are claiming the benefits before reaching the FRA.
- The most important reason is “burnout”. People are done with their jobs, and they are looking to retire as soon as they can to prevent the deterioration of their mental health.
Why is retirement planning getting tougher than usual?
Retirement is known as the golden years in everyone’s life, as you are done with the hustle and everyone has settled, and you are ready to have the time of your life. Now, it was the situation a decade ago for many Americans, and this is becoming out of their reach.
In a time of inflation, which is rising every year, it is becoming harder and harder to accommodate the daily expenses, and the thought of retirement planning is becoming a nightmare, as there is nothing to save. Depending only on pensions and social security benefits will not be enough to lead a comfortable life after retiring.
Each individual’s retirement goal depends upon many things, like where they would be living, their current income, and the main thing is the lifestyle they would like to follow. But by looking over the increased inflation rates, it is advised to save 80% of income, which will be needed for every year of the retirement phase.
And the main concern is that only 16% of the citizens in America think that they would be able to save the amount that will be enough for their retirement. People are facing financial anxiety more than anything, and this has made the overall anxiety rate higher in the USA.
Things to consider before planning your age for retirement
- Check your age and the benefit payout – Create a spreadsheet and note down the total payout if you file early, if you file in your FRA, and if you file at the age of 70. Compare the amount with your living standard and requirements, and then decide on the retirement age.
- Working years – make sure to plan on how many years you are going to work or plan to work. As the working years will count as your credit, the more you work, the more credit you will earn.
- Consider your and your spouse’s health – Considering health and medical condition is the most important, as a person ages, their health starts to deteriorate naturally with time. Make sure to take the health factor into utmost consideration.
- Other Income sources – Social Security should never be the primary source of income. If you have another source, then it would help you to plan a comfortable retirement.
Other things to map out before retiring:
- One should start saving whatever they can if they haven’t already started. Some savings are better than having no savings at all.
- If you are near your retirement age, wait as long as you can so that you can get the maximum monthly payments from your Social Security benefits. People born after 1960 will receive their benefits after 66, but if they wait a few years till 70, they will be getting bigger monthly checks.
- Do not indulge in moving your investments or savings, looking for something safer. It might sound good today, but you may lose a lot if the previous one provides better ROI than the current one.
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