Age 62 has long been a popular age to claim Social Security, and for good reason. It's the earliest age you can sign up to start getting your money.
Now you'll often hear that filing for Social Security at age 62 is a poor choice. At the same time, there are plenty of people who will tell you that claiming benefits at age 62 makes a lot of sense.
So who's right? Well, actually, it depends on your personal circ*mstances more so than anything else.
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The upside of claiming benefits at 62
Filing for Social Security at age 62 means getting your money as early as possible. But that's the simplified version.
For you, collecting that money at age 62 could mean getting to travel at an age when your health is still strong. It could also mean getting to swap a demanding job for a more enjoyable role that's less harmful to your mental health. Or, it could mean getting to start the business you've always dreamed of running.
Filing for Social Security at age 62 could also end up making sense financially if you're worried you won't end up living a very long life. While you'll shrink your benefits on a monthly basis, by getting to collect that money sooner, you might end up with a higher amount of lifetime benefits.
The downside of claiming benefits at 62
You're entitled to your full monthly Social Security benefit based on your personal income history once you reach full retirement age. That age is 67 if you were born in 1960 or later.
Claiming Social Security before that point will result in a reduced benefit. And if full retirement age for you is 67, then filing at age 62 will mean accepting a 30% hit to your benefits -- for life.
An early Social Security filing could end up hurting you financially if you end up living a long life; you could end up with less lifetime income. Also, the longer you live, the more you risk depleting your savings in your lifetime. So in a situation like that, you'd want a higher Social Security benefit to fall back on, not a smaller one, wouldn't you?
It's a personal choice
There are plenty of good reasons to file for Social Security at age 62, and there are probably just as many good reasons to wait. So if you're about to turn 62 and are wondering whether you should claim benefits or hold off, the key is to run through a few key questions. Specifically, ask yourself:
- How's my health, and how might it impact my life expectancy?
- How do I feel about the idea of continuing to work?
- What will I do with my Social Security income if I start collecting it now?
- How confident am I that my savings will last throughout retirement?
It's also a good idea to sit down with a financial advisor and see what they say about claiming benefits at 62 versus waiting. Sometimes, an outside perspective can be helpful in arriving at the right decision.
All told, whether claiming Social Security at 62 is a good idea versus a bad one depends on you. Take your time to think things through so you don't regret your choice to file as early as possible or sit tight and wait.
FAQs
The downside of claiming benefits at 62
What does Dave Ramsey say about taking Social Security at 62? ›
Dave Ramsey said you can claim Social Security at 62 if you're going to invest every dollar. Most retirees can't do this, and many shouldn't even if they can, because investing money you're going to need really soon can be too risky.
What is the #1 reason to take Social Security at 62? ›
You need cash now. With the rising cost of living, you may decide to claim your Social Security benefits early. From 2008 to 2009, nearly 36% of eligible men and 39% of eligible women started claiming benefits at age 62 for one simple reason — to pay the bills.
What does Suze Orman say about taking Social Security at 62? ›
As we have discussed, you are eligible to start claiming your benefit when you turn 62. But the benefit you receive at 62 will be permanently lower than if you wait. Every month past age 62 you don't claim your benefit entitles you to a slightly larger payout when you do start collecting your benefit.
Why you should not draw Social Security at 62? ›
You can receive Social Security retirement benefits as early as age 62. However, we'll reduce your benefit if you start receiving benefits before your full retirement age. For example, if you turn age 62 in 2024, your benefit would be about 30% lower than it would be at your full retirement age of 67.
Is it foolish to retire at 62? ›
There's nothing wrong with that! But plenty of people are. If you're living debt-free, or close to it, and you've already got plenty of assets that can be used for your retirement income, there's no reason to delay your retirement any longer than you need to.
How much does the average 62 year old get from Social Security? ›
For instance, age 66 beneficiaries could choose to receive their payout from age 62 through age 66. According to recently released data from the SSA's Office of the Actuary, just over 590,000 retired-worker beneficiaries were receiving $1,298.26 per month at age 62, as of December 2023.
Is it smarter to take Social Security at 62? ›
Key takeaways. If you claim Social Security at age 62, rather than wait until your full retirement age (FRA), you can expect a 30% reduction in monthly benefits. For every year you delay claiming Social Security past your FRA up to age 70, you get an 8% increase in your benefit.
What percentage of Americans take Social Security at age 62? ›
And as of 2021, according to the Congressional Research Service, about 30% of Social Security applicants were 62.
What is the 5 year rule for Social Security? ›
The Social Security five-year rule is the time period in which you can file for an expedited reinstatement after your Social Security disability benefits have been terminated completely due to work.
A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent. Starting to receive benefits after normal retirement age may result in larger benefits. With delayed retirement credits, a person can receive his or her largest benefit by retiring at age 70.
How much should a 62 year old have in retirement? ›
By retirement age, it should be 10 to 12 times your income at that time to be reasonably confident that you'll have enough funds. Seamless transition — roughly 80% of your pre-retirement income. This amount is based on a safe withdrawal rate (SWR) of about 4% of your retirement accounts each year.
What to consider when retiring at 62? ›
6 Things to Do If You're Nearing Retirement
- #1: Find out where you stand.
- #2: Boost your savings, if you need to.
- #3: Plan ahead for Social Security.
- #4: Consider tax-smart strategies now.
- #5: Get a head start on future health care costs.
- #6: Start thinking about retirement income.
Reason to Retire Early #1: You'll Stay Healthier Longer
But not all work is good for you; sometimes it's detrimental to your health. Retiring at 62 from a backbreaking job or one with a disproportionately high level of stress can help you retain, or regain, your good health and keep it longer.
How do you get the $16728 Social Security bonus? ›
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
What is the highest Social Security check at age 62? ›
The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.
Is it smart to start Social Security at 62? ›
The way Social Security is set up, the longer you wait to collect retirement benefits, the higher your monthly payment. Claiming benefits at age 62 means you will get the smallest possible check. Your check rises yearly past age 62 if you wait to collect.
Does it make sense to take Social Security at 62 and invest it? ›
Take it Now and Invest It
On paper, this often looks really good. If you delay Social Security, they will increase your benefits between 5%-8% depending on your age and the stock market has grown about 10%/year on average for the last 100 years.
What does Dave Ramsey say about when to draw Social Security? ›
Here's when Ramsey said you can claim Social Security at 62
The question focused on whether to start retirement benefits at 62 or wait until full retirement age. In response, Ramsey said that "it usually makes sense to take it early if you're going to ... invest every bit of it."
What percentage of people take Social Security at 62? ›
