BAD MOVE Americans Risk Losing Over $18K in Social Security Benefits by Claiming Too Early

BAD MOVE: Americans Risk Losing Over $18K in Social Security Benefits by Claiming Too Early

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Americans nearing retirement may be unknowingly setting themselves up for a significant loss in Social Security benefits, with some risking reductions of up to $18,100 annually.

According to a report by the Committee for a Responsible Federal Budget (CRFB), seniors could face up to a 24% cut in their Social Security benefits in the coming years, due to a mix of factors stemming from the One Big Beautiful Bill Act (OBBBA), passed earlier this year.

The CRFB report estimates that, if the trends continue, a dual-earning couple retiring in 2033 could lose $18,100 annually in Social Security benefits. For married couples with only one breadwinner, the loss could be around $13,600, while high-income earners could see cuts as steep as $24,000.

These figures highlight a major financial concern, especially as programs like Medicare and Social Security may face funding challenges in the coming years.

However, an even bigger issue is how many Americans are misunderstanding when to claim their Social Security benefits, which could lead to even more significant losses over time. A recent study by AARP revealed that nearly 74% of Americans do not understand the best age to claim Social Security, despite believing they are knowledgeable about the process.

The minimum age to claim Social Security is 62, but claiming before 70 could lock you into a much smaller monthly payment. Once you start receiving your benefits, that amount is fixed for life—unless adjusted for cost-of-living increases, which don’t make up for the initial reduction.

For example, if you claim benefits at 65, you may only receive about 87% of your full retirement benefit. However, if you wait until 70 to claim, you could get 124% of your full benefit, potentially making a huge difference in your monthly income.

Americans are urged to carefully consider when to claim their Social Security benefits, as choosing too early could lead to a costly, irreversible mistake. Proper timing could make all the difference in maintaining financial stability during retirement.

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