When should an older American start collecting Social Security retirement benefits? The question seems easy, but the answer is complicated.

Many individuals can begin receiving Social Security retirement benefits as early as age 62, before full retirement age. But the amount of their monthly payment is reduced -- the trade off for the longer period over which benefits are paid.

Older Americans can also choose to begin collecting full monthly payments at age 65, if they were born before 1938. For everyone else, the full retirement age is higher: if you were born between 1938 and 1959, your full retirement age goes up by percentages of years according to a Social Security age chart; and if you were born in 1960 or later, your full retirement age is 67.

Seniors may delay collecting their retirement benefits until age 70, thus qualifying for a delayed retirement credit. The amount of their monthly payments will go up as much as 8 percent for each year beyond the senior