What is a consequence of taking Social Security benefits earlier than FRA?

Taking Social Security benefits earlier than your Full Retirement Age (FRA) leads to a reduction in total monthly benefits. When you choose to start receiving benefits before reaching FRA, your monthly benefit amount is permanently decreased, typically by a fraction of a percent for each month you take benefits early. This reduction is designed to account for the longer period during which you will be receiving payments.

For someone considering when to take benefits, it is vital to understand that this choice can significantly affect their financial situation throughout retirement. The benefit reduction means that, while you may receive payments sooner, the amount you receive each month will be less than if you waited until FRA or even until age 70, when benefits can increase through delayed retirement credits.

Other options, such as increased monthly benefits after FRA or no impact on long-term benefits, do not accurately reflect the reality of taking benefits early. Additionally, while higher spousal benefits can provide some form of financial support, they are not a direct consequence of taking early benefits for one's own retirement.