Taking Social Security too soon

One of the biggest temptations you could face is to initiate taking Social Security benefits right after you become eligible, but way before you reach the “full retirement age”, according to the terms of the federal government.

If you jump on the occasion without thinking twice, the chances for you to wind up with a smaller check every month are higher. In theory, you should receive the same amount of benefits throughout your retirement, regardless of the age at which you decided to claim them.

The Social Security system is designed to be completely neutral in this matter.

However, if you claim it too soon, it can be risky, because once you claim those benefits, you will have to stick to the same size payment for your entire life. The amount of money you will receive monthly will never increase unless there are any inflation adjustments.

In the situation where you are the main breadwinner in the family, you might want to think twice about starting your Social Security benefit earlier, as your spouse might also receive that smaller benefit amount one day.

Dorothy