By Wes Lyon, CPA, CFP^®

One of the most frequently asked questions I receive is, “When should I claim my Social Security benefits? Is it better to claim benefi ts at Full Retirement Age (FRA, currently 67), as early as 62, or delay until age 70? Claiming benefits early at age 62 reduces your monthly benefit by about 30%, while delaying until 70 increases your benefit by 8% annually.

Two methods are commonly used to determine your optimal claiming strategy. The first calculates how much your Social Security benefits will be worth if invested monthly over your lifetime (their future value). The other method is just the opposite; what lump sum (present value) would it take to pay these benefits over your lifetime?