The monthly benefit you collect from Social Security throughout retirement will hinge on how much you earn in the course of your career. But there’s another factor that will determine how much you receive each month — your filing age.
You’re entitled to your full monthly benefit based on your wage history once you reach full retirement age (FRA), which is 66, 67, or somewhere in between, depending on when you were born. However, the Social Security Administration (SSA) will allow you to file for benefits as early as age 62.
Doing so has its benefits and drawbacks. The plus side? You get your money sooner. The downside? You slash your benefits in the process. In fact, if you’re looking at an FRA of 67 and you file for Social Security at 62, your benefits will take a 30% hit.