If you receive Social Security retirement benefits, more money should be coming your way this month. In October, the Social Security Administration (SSA) announced a 2.5% cost-of-living adjustment (COLA).

The full retirement age for Social Security is set to increase in 2025, with the age for new retirees to claim and receive their full benefit rising to 66 years and 10 months.

If you've got Social Security on your mind, you need to know your "full retirement age" as your age in relation to that affects your benefit level.

You can, however, choose to claim as early as 62. If you do so, however, you'll be penalized. Each month before your FRA incurs a penalty of 5/9 of 1% (for the first 36 months prior to turning 67) and 5/12 of 1% (for the next 24 months). All told, you could lose as much as 30% of your intended PIA.

Fact checked by Giselle Cancio If you're a qualified American, you're entitled to receive your hard-earned Social Security benefits in retirement. However, you may find yourself in a situation where your Social Security benefits are smaller than expected because you've earned too much money while receiving early retirement benefits.

One of the most critical decisions is when to start receiving Social Security benefits. Social Security is a primary source of retirement income for many Americans, so it makes sense to think about all the possible ways to maximize benefits.

The earlier you begin taking Social Security, the smaller your payments will be. Filing for benefits at 65 can be a smart compromise for many people. The right age for you to file will depend on your preferences and priorities.