3 Reasons to Claim Social Security Benefits Early

The decision to file for Social Security isn't an easy one, since the age you claim benefits at will dictate how much monthly income you receive for the rest of your life. If you opt to sign up for Social Security at full retirement age (FRA), you'll get the exact monthly benefit your personal earnings history entitles you to. FRA is either 66, 67, or somewhere in between, depending on your year of birth.

Of course, you don't have to file for benefits at your precise FRA; you're allowed to sign up as early as age 62. But for each month you claim Social Security ahead of FRA, your monthly benefit will shrink on a permanent basis, leaving you with less income to enjoy.

Now you'll often hear that it's a good idea to file for Social Security at FRA or beyond (delaying benefits will boost them by 8% a year, up until age 70), as that will help ensure that you don't wind up cash-strapped as a senior. But actually, it often pays to claim benefits well before FRA. Here are three reasons why.

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Source Fool.com