When turning 65, milestones like Medicare eligibility and the end of employer health insurance occur. Many Americans file for Social Security at this age, but it can have expensive consequences. Claiming early without understanding the rules can result in missed income totaling over $43,000 in a 20-year retirement.

Three retirees shared their experiences after claiming Social Security at 65. Sandra believed 65 was the standard full retirement age, unaware that her FRA was actually 66 and 4 months. This early claim resulted in a monthly benefit reduction of about 8.9%, equating to $180 less per month if her full benefit were $2,000.

James claimed at 65 without waiting, impacting his wife’s survivor benefit. If he had waited until 70, his benefit would have been larger. Linda, who started claiming before reaching her FRA, triggered the earnings test, causing the Social Security Administration to withhold payments and create unexpected financial stress.

Filing for Social Security at 65 is a common assumption, but it’s not a one-size-fits-all decision. The retirees’ experiences illustrate the importance of understanding the rules and implications of claiming early. Social Security is irreversible, with only a 12-month window to withdraw an application and repay all received benefits.

Before filing for Social Security at 65, confirm your full retirement age, compare the impact of filing early, discuss strategies with your spouse, and understand how working may affect benefits. Social Security is a crucial retirement component, but filing without a plan can lead to unforeseen costs.

Read more at Yahoo Finance: This Was My Biggest Mistake With Social Security