4 Reasons To Claim Social Security at 62 — And 3 Reasons Not To
Written by
John Csiszar
Edited by
Gabrielle Olya
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In an overall sense, Social Security is pretty simple. During your working years, you pay Social Security taxes to the government. When you retire, you’re provided with monthly income for life. But a look under the hood shows that Social Security can actually be quite complicated. The biggest issue for most retirees is when they should claim their benefits. According to the Social Security Administration, “full retirement age” for those born in 1960 or later is now 67. But you’re allowed to file for Social Security as early as age 62 or as late as age 70.
Depending on when you file, your “full retirement age” benefit could be reduced by as much as 30% — in the case of filing at age 62 — or increased by as much as 24% if you wait until 70. So, what are the reasons why you might want to file at age 62, and when might you be better off waiting? Read on to learn more.
Reasons To Claim at Age 62
Here’s a look at why you might want to claim early.
You’ll Get Your Benefits Sooner
Probably the most popular reason to claim your Social Security benefits at age 62 is that it’s the earliest that you can get access to your money. While your benefits will be greatly reduced, you’ll receive five full years of payments instead of waiting until your full retirement age.
Imagine, for example, that your full retirement benefit is $2,000 per month, but if you file at age 62 it’s reduced to $1,400. You’ll receive a whopping $84,000 in payments — $1,400 per month x 60 months — before you even reach full retirement age.
You Need the Money
If you don’t have retirement savings or just can’t keep up with rising costs, you might need your Social Security benefits just to get by. If you don’t think you can wait five years to boost your monthly income, you might be better off filing at age 62.
Your Life Expectancy Is Short
No one knows how long they will live with any certainty. However, if longevity doesn’t run in your family or if you have chronic health problems, you might consider taking your Social Security early. If you wait until age 70 and have a short life span, you may never enjoy your benefits.
You Want To Retire Early
Many Americans file for Social Security benefits as soon as they can because they simply want to retire early. Claiming Social Security at age 62 may make sense if you plan to hang up your work boots and begin your retirement as soon as possible.
Reasons To Wait
Here’s a look at why you might want to hold off on claiming too soon.
You Want the Highest Benefit Possible
The major drawback with claiming Social Security at 62 is that you’ll be permanently reducing your monthly paycheck. While getting five additional years of payments may start out as a great plan, once you reach age 67 — or perhaps age 70 — you may regret the hundreds of additional dollars per month you’d be earning for the rest of your life.
You’re Going To Live a Long Life
If you’re in tip-top shape and your family has a history of living to 100, you might consider waiting until 67 or 70 to file for benefits. If you’re going to live an additional 30 years or more after full retirement age, you’ll earn considerably more over the course of your life if you wait as long as possible to file for Social Security benefits.
You Want To Maximize Your Spouse’s Benefit
Your spouse can qualify for as much as 50% of your Social Security benefit, even if he or she never worked or paid into Social Security. However, spousal benefits are based on the amount that the primary filer receives. If you file at age 62 and your benefits are reduced by 30%, for example, your spouse will also receive a smaller benefit. To maximize your total family benefits, both you and your spouse should wait to file until full retirement age.
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