Turning 66 in 2027? Don't Make This Big Social Security Mistake

If you’re turning 66 in the coming year, you may be planning to sign up for Social Security benefits. But if you’re expecting to collect your monthly benefits in full, you may want to rethink that plan.

Filing for Social Security at 66 next year will slash your monthly checks for life. It’s important to understand when your benefits are available to you without a reduction, and what filing early might mean for your near- and long-term finances.

Full retirement age is no longer 66

Age 66 used to be full retirement age for Social Security. But for anyone born in 1960 or later, Social Security’s full retirement age is 67.

If you’re turning 66 in 2027, it means you’ll be filing for Social Security a year early. That will permanently reduce your benefits by about 6.67%.

Now, if you have plenty of retirement savings, and there’s a reason you specifically want to claim Social Security at 66, doing so may not be a bad idea. What is a bad idea, though, is claiming Social Security at 66 because you think that’s when your benefits are available to you without a reduction, all the while not realizing you’re signing up early.

A 6.67% hit to your benefits may not sting all that much on a one-year basis. But over your lifetime, that reduction could add up.

Let’s say your monthly Social Security benefit is $2,000 at age 67. If you file a year early, you’ll lose about $133 per month.

But if you collect Social Security for 20 years, that $133 monthly reduction will amount to almost $32,000. That’s a lot of money to give up.

Make sure you know the rules

No matter your age, if you’re getting close to claiming Social Security, it’s important to read up on the program’s rules before moving forward. Your filing age directly affects the amount of money you receive each month during retirement, so it’s crucial to know what you’re signing up for.

You may decide that you’re willing to take a modest hit on your Social Security benefits if getting those checks sooner allows you to kick off retirement when you’re healthier, travel while your mobility is still strong, or do other things that will enhance your life. But make sure there’s a good reason to claim Social Security in 2027 if you’ll only be 66 next year. Otherwise, you could end up shrinking your benefits for nothing.