If I start collecting benefits early or late, how will it change my monthly benefit?

Starting your benefits early or late will significantly impact how much you receive each month. If you start your benefits early (prior to age 66 or 67 for those born after 1960), Social Security reduces the monthly payment by 5/9 of 1 percent for each month before full retirement age, up to 36 months, and 5/12 of 1 percent for each additional month. By way of example, if you were born in 1960, meaning you will turn 62 in 2022, your retirement benefit amount would be reduced by 30 percent if you retire early at age 62. Conversely, your retirement benefit amount is increased by eight percent for every year you delay receiving benefits, up to age 70. For most people, that means your benefit amount could be increased by 24 percent by retiring at age 70 instead of age 67.