What is the only day of the month that allows for a full 48-month reduction in benefits?

The correct answer highlights an important detail about how benefit reductions work in the context of Social Security. Specifically, benefits can be reduced based on the month the individual begins collecting those benefits.

The 2nd of the month is significant because when an individual begins their benefits on this date, it effectively counts as though they have started one day earlier in that month for calculation purposes. This can lead to a full 48-month reduction in benefits because it allows for a complete month to be accounted for in the reduction period.

In contrast, starting benefits on days other than the 2nd may not afford that same 48-month reduction. For instance, starting on the 1st does not account for an additional month, while initiating benefits on the 15th gives you only partial credit toward the reduction. Starting at the end of the month may also not maximize the reduction in the same way as starting on the 2nd does.

Understanding this aspect of benefit reductions is crucial for individuals considering when to start their Social Security, as it can greatly impact their overall benefits.