There’s a strong chance Social Security will wind up playing an important role in your retirement. Maybe you’ll need that money to cover your essential bills, like housing and healthcare. Or maybe you’ll kick off your senior years with enough money in a savings plan to tackle your basic expenses, but you’ll need Social Security to pay for things like travel and entertainment.
Either way, it’s important to get as much out of your benefits as you can. But if you’re misinformed about Social Security, you could wind up locking in a lower monthly benefit for life.
Such is the risk most Americans are taking today. Only 17% of people are able to correctly identify their full retirement age (FRA) for Social Security purposes, according to a recent Fidelity survey. That means most are in the dark about when they’re entitled to receive their benefit in full — and they risk signing up at the wrong time as a result.