What's the One Thing All Retirees Should Do Before Claiming Social Security Benefits in 2026?

Core Insights - Claiming Social Security benefits is a significant milestone in retirement planning, necessitating careful preparation to ensure adequate financial support [1] Group 1: Importance of Full Retirement Age (FRA) - Understanding one's full retirement age (FRA) is crucial, as it determines the percentage of benefits received based on work history [4] - A survey indicates that only 21% of U.S. adults can accurately identify their FRA, with nearly 80% being unaware, which can lead to financial repercussions [4][5] - The average FRA perception among baby boomers is 66 years, while Gen Xers estimate it at 65 years; however, for individuals born in 1960 or later, the FRA is actually 67 years [6] Group 2: Impact of Early Claiming - Claiming Social Security benefits before FRA results in permanent reductions in monthly payments; for instance, filing at age 66 instead of 67 leads to a 6.7% decrease in benefits [7] - A hypothetical monthly benefit of $2,000 at FRA would see a reduction of $134 per month, totaling $1,608 annually if claimed early [8] - While early claiming can be beneficial in certain scenarios, it is essential to be aware of the potential reductions to avoid receiving smaller-than-expected checks [9]