Social Security: Filing early vs FRA - which gives better financial advantage for low savings?

go with option 1... bird in hand is worth 2 in the bush. you never know whats gonna happen in 6 years!!

That's definitely what my gut is telling me too. The idea of having that cushion sooner rather than later is really appealing.

Have you considered what happens AFTER those 6 years though? Every month after that 6-year mark, you'd be getting $200 more PER MONTH for the rest of your life with option 2. That could be decades of higher payments! I'm also confused about the spousal top-off - are you getting spousal benefits or your own retirement? The rules are different and that might change the calculation.

Good point about the long-term benefit. For the spousal part - my spouse already receives their benefit and mine would be lower, so I'd get my own benefit plus a spousal supplement to bring me up to the 50% level of their benefit. At least that's my understanding of how it works.

This is a classic retirement planning question, and the math actually favors waiting to FRA in most cases. While the initial $15,000 seems attractive, consider this: the average life expectancy for someone reaching retirement age is now into their mid-80s. If you live 20 years past your FRA, that's an additional $48,000 ($200 × 12 × 20) you'd receive by waiting.More importantly, you need to factor in annual Cost of Living Adjustments (COLAs). Each year, that $200 difference will grow with inflation. So the gap between early filing and FRA filing continues to widen over time.Also, consider how the earnings test works - while you do lose benefits if you earn over the limit before FRA, those benefits aren't truly lost. SSA recalculates your benefit at FRA to account for months when benefits were withheld.

Thank you for breaking this down! I didn't realize that about the COLAs applying to the difference too. And I had NO idea about the recalculation at FRA for withheld benefits. That definitely changes things. So if I file early but earn too much, I'm not permanently losing those benefits?

I was in almost the EXACT same situation last year!!! Needed money now vs waiting for FRA. I ended up filing early and REGRET IT EVERY MONTH when I see my check!!! The reduction is PERMANENT and every COLA increase is calculated on the LOWER amount!! Think carefully!!!

not everyone lives to 85 tho... my dad waited til 70 to file and got exactly 4 checks before he passed. all that money he couldve had for years just gone

The decision between early filing and waiting until FRA depends on several factors that you might want to consider:1. Your health and family longevity - this affects your personal break-even point2. Your immediate financial needs - if you genuinely need funds for essential expenses, that's important3. Investment potential - theoretically, if you could invest that $15,000 and earn significant returns, it could offset the permanent reduction4. Spousal planning - how your decision affects your spouse's potential survivor benefits5. Tax implications - how the additional income affects your tax situation each yearFor the earnings limit, in 2025 you can earn up to $22,670 before benefits are reduced if you're under FRA (the limit typically increases yearly). After that, $1 in benefits is withheld for every $2 earned above the limit. As another commenter mentioned, these benefits aren't permanently lost - they're added back when you reach FRA.Have you spoken with a financial advisor who specializes in retirement planning? This decision impacts decades of income.

Thank you for this detailed breakdown. I actually haven't consulted with a financial advisor - that's a really good suggestion. My family tends to be pretty long-lived (both parents made it to their 90s), so that probably factors into the equation too.

I spent 2 months trying to get through to SSA to ask this EXACT question last year! Kept getting disconnected or told wait times were over 2 hours. Finally I found Claimyr (claimyr.com) and they got me connected to a real SSA agent in 20 minutes. The agent walked through all my numbers and helped me understand my specific break-even point. Totally worth checking out their video demo at https://youtu.be/Z-BRbJw3puU if you're struggling to get specific answers for your situation.

I've been putting off calling because I've heard horror stories about the wait times. I'll check this out - it would be really helpful to talk through my specific numbers with someone who knows the system. Thanks!

I think everyone's ignoring the fact that you said you're planning to continue working? Make sure you understand that if you claim before FRA and earn above the limit, your benefits will be reduced. In 2025, for every $2 you earn above $22,670 (approximately), they'll take away $1 of your benefits. So your plan to \

That's actually exactly what I meant - I'd work only up to that earnings limit so I don't lose benefits. Then I'd stop working for the remainder of the year. But now that I know those

What about your health insurance???? If you're under 65, what will you do about Medicare?? That's a HUGE factor no one is discussing!!

Very good point. Medicare eligibility begins at 65 regardless of when you claim Social Security benefits. If the original poster is claiming before 65, they would need to factor in health insurance costs until Medicare eligibility. This could significantly impact the financial calculations.

Hang on a second - I'm confused about something. You mentioned a \

Good catch. Under current rules, when you file for any retirement benefit, you're deemed to have filed for all benefits you're eligible for. This is called \