62 and Ready to Claim Social Security? Here’s Why It’s Not a Bad Idea?

Race Day Live When it comes to Social Security, you have the choice of when to start collecting your benefits.

The earliest age you can begin is 62, but filing early generally means reducing your monthly payments for life.

That’s why many experts recommend waiting until your full retirement age (FRA) to claim. Doing so ensures that your benefits remain at their full amount, giving you more income each month.

However, despite what you might hear, claiming Social Security at 62 is not always a bad idea. It depends on your situation. While there are risks involved, there are also benefits that could work in your favor.

Why Claiming at 62 Might Not Be a Bad Idea?

The biggest downside to claiming Social Security early is clear: You’ll receive a lower monthly benefit for life.

But there’s also an important advantage—getting your money sooner rather than later.

Taking Social Security early could result in more lifetime income, depending on how long you live.

If you delay benefits past 62 but pass away earlier than expected, you might receive less money overall than if you had started collecting earlier.

No one knows exactly how long they will live. That uncertainty makes delaying Social Security a potential gamble.

If you wait too long and don’t live to enjoy the benefits, you could miss out on income that would have helped you enjoy your retirement.

A Break-Even Analysis: How Long Do You Need to Live to Benefit from Delaying?

To understand this better, let’s look at a break-even analysis. Imagine you’re eligible for a $2,000 monthly Social Security benefit at age 67 (the FRA for anyone born in 1960 or later). If you decide to start benefits at 62 instead, your monthly benefit drops to $1,400.

At first glance, that reduction seems like a bad deal. However, by the time you reach around 78 and a half years old, both scenarios would have provided the same total amount in benefits.

In other words, if you live beyond 78 and a half, delaying benefits would have been the better financial move. But if you pass away before that age, claiming early would have resulted in more total income.

Weighing the Risks of Waiting

Many people assume that waiting to claim benefits is always the smartest move. But delaying comes with its risks.

Every day you wait beyond your 62nd birthday is a day that you are not receiving Social Security payments.

If you have health concerns or a shorter life expectancy based on family history, filing early could make sense. You don’t want to wait too long and risk missing out on benefits that could improve your quality of life in retirement.

Consider Your Financial Situation

Your financial circumstances should also guide your decision. If you’re still working at 62 and earning a good salary, delaying Social Security might be a better option since you don’t immediately need the income.

In contrast, if you have limited savings and could use the extra money now, claiming early might be the right move for you.

Additionally, if you have investments or other retirement income sources, you may want to evaluate how Social Security fits into your overall financial plan.

If withdrawing from your retirement accounts early would deplete your savings quickly, then taking Social Security sooner could help balance your income streams.

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The Importance of Enjoying Retirement

One factor that is often overlooked in this decision is quality of life. Many people look forward to retirement as a time to enjoy hobbies, travel, and spend time with family.

If taking Social Security at 62 allows you to enjoy life more while you’re still healthy and active, that might be worth more than the extra money you’d receive by waiting.

Waiting until full retirement age—or even later—might give you a bigger check, but if it comes at the cost of missing out on experiences you want to have while you’re younger, it may not be the best choice for you.

The Final Takeaway

There is no one-size-fits-all answer to the question of when to claim Social Security. While waiting until full retirement age may seem like the safest choice, it’s not always the best option for everyone.

Instead of assuming that claiming at 62 is too risky, take a step back and look at the bigger picture.

Consider your health, financial situation, and personal goals. No matter when you decide to file, there is always some level of risk involved. The key is choosing the option that makes the most sense for your unique circumstances.

By thinking about your needs, priorities, and life expectancy, you can make a more informed decision about when to claim Social Security—one that helps you get the most out of your retirement years.

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