Quite a significant number of the near-retirees remain confused about one major key social security rule. The issues arise from the point that they could end up making the mistake of cutting down their benefits, something that could end up plunging them in financial turmoil. They must get their facts right early before they get to such a point.
A MassMutual survey that was conducted recently saw about 31% of the near-retirees speak out on the full retirement age. The issue is that most of them don’t tend to get their facts right. The calculation of the Social security benefits takes into consideration one’s earnings. There is the selection of the 35 years in which one gets the highest in terms of pay. It is also worth noting that the employees are only entitled to his/her full monthly benefits only after he attains the full retirement age or FRA.
The MassMutual survey showed about 31% of the near-retirees with the common misconception that FRA Kicked at age 65. That was the figure for them despite the year of birth. Any employees guided by such a misconception could end up frustrated according to experts in the field.
The filing age matters a great deal
One can make claims of his/her social security before FRA, however, one needs to remember that there are some reductions made for each month one makes the claims. There is the minimum age that one can sign up, and it currently stands at 62.Surprisngly, it tends to be the age that most of the people feel the need to make a filing. However, one needs to remember that making claims at the age of 62 when one has an FRA of 66 isn’t the best thing. The reason is that one usually ends up suffering from a reduction of about 25% in terms of his/her Social Security income.
The person that files at 62 with an associated FRA of 67 should anticipate a 30% cut and that is more reason why one needs to be cautious to get facts straight. The rule of the thumb is for one to properly understand his/her correct FRA before moving ahead to make a filing.