When you claim Social Security has a huge effect on your financial security in retirement. The best time to sign up depends on individual factors, like your monthly expenses and your life expectancy. For some people, that's right away at 62 and for others, it's later.

But there is one common Social Security decision that a lot of retirees wind up regretting.

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More checks come at a price

Those who claim Social Security at 62 get the most checks they can, but this doesn't always lead to the largest lifetime benefit. The Social Security Administration reduces your checks a little for each month you claim early -- that is, for every month you claim benefits under your full retirement age (FRA).

FRA varies based on your birth year. Use the following table to identify yours:

Data source: Social Security Administration.

If you claim before your FRA, you'll lose:

• 5/9 of 1% per month for up to 36 months of early claiming
• 5/12 of 1% per month for every month beyond 36 months of early claiming

That amounts to a 25% benefit reduction for those with FRAs of 66 who claim at 62, or a 30% reduction for those with FRAs of 67 who claim immediately. To put this in perspective, if you qualify for the $1,907 average monthly benefit at your FRA of 67 but claim at 62, you'll only get about $1,335 per month.

This isn't the wrong decision for everyone, but it often leads to a smaller lifetime benefit for those who live a long time. That's because eventually, the larger checks you'd get from delaying benefits outweigh the more numerous, but smaller, checks you get by starting early.

Early claiming remains popular with 51% of seniors signing up before their FRA in 2022. Yet more than 2 in 5 retirees wind up regretting this decision, according to a recent Nationwide survey. That doesn't mean it's wrong for you, though.

How to decide when you should apply for Social Security

There are a few key factors to consider when deciding whether to apply for Social Security early. First is your financial situation. If delaying Social Security would put you at risk of falling behind on your essential bills, it's not worth it. The larger benefit checks you'd get in the future probably won't be enough to help you get things back on track.

Those who aren't in a pressing financial situation should consider their life expectancy. People who have a terminal illness or a history of poor health may be better off claiming early. There's a chance that if they delay, they could die before they're able to claim any benefits.

But those who live into their 80s or beyond frequently get more money by delaying benefits until their FRA -- or even beyond. For every month you put off Social Security past your FRA, you add 2/3 of 1% per month until you reach 70. That's when you qualify for your maximum benefit.

Single adults can base their decisions solely on what's best for them, but married people and seniors with dependents also have to consider how their choices will affect their family members. Spouses and qualifying children cannot claim benefits until the worker signs up. So for retirees whose family members will also sign up using their record, it might make sense to sign up earlier than they otherwise would.

It doesn't hurt to weigh a few options before you make your decision. Choose a tentative claiming age for now based on the factors discussed above. You can always change your mind later if your health or plans change.

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