Social Security benefit increase from 62 to FRA - is it different than FRA to 70?

No its not the same! The reduction from 62 to FRA is about 5-6% per year, not 8%. And its not exactly the same each year either. I think its actually calculated monthly by some weird formula.

Your financial advisor was using the correct terminology. The growth from FRA to 70 is called 'delayed retirement credits' and is exactly 8% per year (or 2/3% per month). However, the reduction from FRA back to 62 is calculated using 'actuarial reduction factors' which are approximately 5/9% per month for the first 36 months before FRA (about 6.67% per year) and 5/12% per month for months beyond that (about 5% per year). For someone with an FRA of 67, claiming at 62 results in a total reduction of about 30% from your FRA benefit amount. This is different from the straight 8% per year increase after FRA. The difference exists because they're based on different calculations - the early reduction is actuarially determined based on average lifespan, while the delayed credits are specifically designed as incentives to encourage later claiming.

I was TOTALLY confused about this too when I was deciding when to claim!!! the SSA website explains it but its super confusing. The thing that helped me understand was going to my local office and having someone show me the EXACT numbers for MY situation. Every time I tried calling I got disconnected after waiting FOREVER!!!

My sister and I are both retiring soon and we were just talking about this! She's taking her benefits at 62 even though they're reduced because she needs the money now. I'm waiting till 67 because I'm still working part time. Everybody's situation is different!

Another important factor to consider is that the reduction before FRA affects your benefit permanently. Some people mistakenly believe that if they claim at 62, their benefit will automatically increase to the full amount when they reach their FRA - but that's not the case. The reduction is permanent (except for any COLA increases that would apply to all beneficiaries). Also, if you're still working while collecting early benefits, you may be subject to the earnings test, which temporarily withholds benefits if you earn above certain thresholds ($22,320 in 2025 for those under FRA). Once you reach FRA, your benefit would be recalculated to give credit for months when benefits were withheld. Finally, the decision impacts survivor benefits as well. If you're married, waiting until 70 not only maximizes your retirement benefit but also potentially maximizes what your surviving spouse could receive if you pass away first.

i claimed at 62 and now i regret it so much!! wish i had waited. im getting almost $800 less each month than if i waited till my FRA. think carefully about your decision!!

As a final note, the SSA provides calculators on their website that can show you your estimated benefit amounts at different claiming ages. These estimates are based on your actual earnings record. You can also schedule an appointment with an SSA representative who can walk you through your specific options. The decision of when to claim is highly personal and depends on factors like your health, family longevity, current financial needs, other income sources, and marital status. There's no one-size-fits-all answer, but understanding the exact percentage increases and reductions helps you make an informed choice.