Which statement about Social Security retirement benefits is true?

Which statement about Social Security retirement benefits is true?

• A. Early Retirement results in permanently reduced benefits.
• B. Early Retirement results in increased benefits.
• C. Full Retirement equals 80% of benefits.
• D. Early Retirement has no effect on benefit amount.

Answer: (A)

Taking Social Security retirement benefits before you reach your full retirement age lowers the amount you receive each month for life. This reduction is built into the benefit formula and becomes permanent, so even if you live a long time, your monthly checks stay smaller. Waiting to claim beyond full retirement age can increase your benefit through delayed retirement credits, up to age 70, but you don’t get more by claiming early. At full retirement age you receive 100% of your primary insurance amount, not 80%. So the statement that early retirement results in permanently reduced benefits is the true one.

Taking Social Security retirement benefits before you reach your full retirement age lowers the amount you receive each month for life. This reduction is built into the benefit formula and becomes permanent, so even if you live a long time, your monthly checks stay smaller. Waiting to claim beyond full retirement age can increase your benefit through delayed retirement credits, up to age 70, but you don’t get more by claiming early. At full retirement age you receive 100% of your primary insurance amount, not 80%. So the statement that early retirement results in permanently reduced benefits is the true one.