Claiming Social Security at age 62 has long been considered a financially risky move due to the permanent reduction in monthly benefits. However, for many retirees, early filing may be the key to greater financial flexibility and a more enjoyable retirement. While waiting until full retirement age (FRA) or even delaying until 70 maximizes benefits, some individuals find that taking Social Security early aligns better with their personal and financial goals.
When Social Security Is Just a Bonus—Not a Necessity
One of the main reasons financial advisors warn against claiming Social Security early is the reduced benefit. If your FRA is 67, claiming at 62 means your monthly check will be about 30% lower than if you had waited. That’s a significant cut, especially for retirees who rely on Social Security as their primary income source.
However, for those who have diligently saved and invested, Social Security is often a supplementary income rather than a necessity. In these cases, claiming benefits early can provide financial flexibility without jeopardizing long-term security.
For example, retirees who have accumulated a healthy 401(k) or IRA balance may prefer to let their investments continue growing while using Social Security for discretionary spending. This could allow them to travel, pursue hobbies, or simply enjoy their retirement without worrying about market fluctuations affecting their savings.
The Numbers: How Early Claiming Affects Benefits
| Claiming Age | Benefit Reduction (FRA = 67) | Monthly Benefit (% of Full Amount) |
|---|---|---|
| 62 | 30% | 70% |
| 63 | 25% | 75% |
| 64 | 20% | 80% |
| 65 | 13.3% | 86.7% |
| 66 | 6.7% | 93.3% |
| 67 (FRA) | 0% | 100% |
| 70 | +24% | 124% |
While delaying Social Security results in a higher monthly payout, the trade-off is waiting longer to receive any benefits at all. For some, the opportunity to enjoy retirement earlier outweighs the long-term financial gain.
Health and Longevity: A Key Factor in the Decision
Health plays a crucial role in determining when to claim Social Security. If you have a family history of longevity and are in good health, delaying benefits may be the smarter move. The longer you wait, the higher your monthly check will be, and if you live into your late 80s or 90s, the additional income can make a significant difference.
On the other hand, if you have medical concerns or a shorter life expectancy, claiming early can ensure you get the most out of your benefits while you’re still healthy enough to enjoy them. Social Security is designed to be actuarially neutral—meaning, in theory, a person who lives an average lifespan will receive roughly the same total amount whether they claim early or late. However, if you don’t expect to live into your 80s or beyond, taking benefits sooner can be the more practical choice.
The Lifestyle Advantage: More Freedom and Flexibility
For many retirees, the biggest advantage of claiming Social Security at 62 isn’t about financial strategy—it’s about lifestyle.
Reasons Some Retirees Claim Early:
- More Active Years: Enjoy travel, hobbies, and experiences while still in good health.
- Avoiding Early Withdrawals: Using Social Security instead of tapping into retirement accounts can allow savings to grow.
- Stress Reduction: Having a steady income earlier can provide financial security and reduce the pressure to work longer.
- Family and Personal Time: Some choose early retirement to spend more time with family or care for loved ones.
A fulfilling retirement isn’t just about maximizing income—it’s about maximizing life experiences. If claiming early allows you to enjoy your golden years without financial stress, it could be the right move.
Making the Right Choice for Your Retirement
There is no universal answer to when you should claim Social Security. The best decision depends on your financial situation, health, and retirement goals. While financial advisors often recommend delaying benefits for higher payouts, claiming early can be a strategic and fulfilling choice for those who have planned accordingly.
If Social Security is just a supplemental income source, or if you value early access to funds for personal enjoyment, there’s no reason to dismiss filing at 62. Retirement is about more than just numbers—it’s about making the most of your time while you have it.
FAQs:
1. Is it always a bad idea to claim Social Security at 62?
No. While claiming early reduces monthly benefits, it can make sense for retirees with strong savings, health concerns, or a desire to enjoy their early retirement years.
2. How much will my benefits be reduced if I claim Social Security early?
If your FRA is 67, claiming at 62 results in a 30% reduction in benefits. The reduction decreases for each additional year you wait.
3. Does claiming early affect spousal benefits?
Yes. If you claim early, your spouse’s benefits may also be reduced, depending on their claiming strategy.