Key Points
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Claiming Social Security at 62 can result in benefits shrinking.
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While experts generally recommend waiting until age 70 to start benefits, sometimes a claim at 62 makes sense.
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If you don’t have a long life expectancy or if you’re opening up the door for your spouse to delay their own claim, waiting until 62 could make sense.
Workers can claim Social Security starting at age 62, but this isn’t considered to be the ideal claiming age in most circumstances. Starting Social Security at 62 can substantially reduce your benefits, cutting your monthly benefit by as much as 30% if your full retirement age is 67.
While reducing this source of inflation-adjusted guaranteed income may be something that you regret, an early claim makes sense in certain circumstances. In fact, here are three situations when a claim at 62 may be the best move.
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1. When you’re single and in poor health
Waiting to claim Social Security can increase your benefits. For every month you wait after turning 62, your monthly payment grows either due to the fact that you avoid early filing penalties or because of the delayed retirement credits you can earn after your full retirement age.
However, delaying Social Security also means giving up benefits you could be collecting. Doing this could make sense if you get your larger benefit for enough years to make up for forgone income. The extra you get each month often more than makes up for the money you passed up starting at 62.
However, if you’re in poor health or you have a short life expectancy, this may not be the case. If you plan to delay your benefits until 67 or 70, but you don’t live that long, you’ve given up years of income you could’ve collected for no reason.
Now, if you have a spouse and you were the higher earner, they’d get higher survivor benefits due to the fact that you waited to claim. But if you’re single, you don’t get this benefit, and you just gave up money for nothing.
2. When your savings are running out
Many people can’t work much beyond age 62. If you have serious health issues, can’t find a job, or have family members who need caregiving support, you may be forced out of the workplace.
If that’s the case, you’ll need money to live on. If you have enough money without Social Security, you can delay your benefits claim. But if you can’t make your bills without either starting your retirement benefits or draining your retirement accounts too fast, you’re better off starting your Social Security checks sooner rather than later.
Taking the hit from early filing penalties by filing at 62 is better than draining your investment accounts and having nothing to fall back on.
3. When you’re enabling a higher-earning spouse to delay
Finally, if you can claim at 62 to allow a higher-earning spouse to increase their own benefit, this is very often the best move. You can increase the higher benefit and maximize survivor benefits with this approach.
Plus, if you claim your own retirement benefit but your spouse earned more than you over their working years, you can switch over to spousal benefits after they finally start their checks. If you make this switch, it won’t matter that you shrank your retirement check, since you won’t collect it for long anyway.
If you find yourself facing any of these situations, starting your Social Security at 62 may very well be the best choice, and it’s definitely worth considering.
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