To make the best decisions about Social Security, you should understand the concept of your “normal retirement age” (also called your “full retirement age”). For those born in 1937 or earlier, it is 65. For those born in 1960 or later, it is 67. For those born in 1938 through 1959, it is some in-between date. (To check out your date, go to www.ssa.gov.)
You can decide to start your Social Security benefits as early as age 62 but your benefits may be reduced by as much as 30 percent. Such a reduction will shrink your monthly checks permanently.
If you decide to defer getting Social Security past your normal retirement age, your benefits will be increased by 3 percent to 8 percent per year, depending on when you were born: those born in 1943 or later will get the largest increase. For the maximum monthly benefit, defer your benefits until you reach age 70.