2 Reasons to Claim Social Security at 65

One of the trickiest decisions you'll have to make in retirement is figuring out when to claim Social Security. You can file for benefits at any point once you turn 62. But you'll need to wait until full retirement age arrives to get your monthly checks without a reduction. If you were born in 1960 or later, that age is 67.

You may be inclined to file for Social Security at age 65. And if you do, you should know that your benefits will be reduced by about 13.33% compared to waiting until full retirement age.

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For context, filing for Social Security at 62 will reduce your benefits by about 30% compared to full retirement age. So here, the financial hit isn't quite as extreme.

But it's a reduced benefit nonetheless. So it's important to claim Social Security at 65 for the right reasons. And here are two perfectly valid ones.

1. You need the income right away

Maybe your goal was to work until age 67 and beyond, only life got in the way. An injury could be making it difficult to perform your job functions. The mental strain of your commute could be causing so much stress that it's harming your health.

Or your company may be downsizing. And if you're less than eager to start over at a new place of work, that's understandable.

If you're unable to continue working at 65, that's a good reason to file for Social Security. Even if you have savings, you may not have enough to cover your needs in full. And you're better off taking a modest hit on your monthly benefits than racking up costly debt to pay your bills.

2. You've saved well and want the money sooner to enjoy life

Filing for Social Security at 62 can be risky because you're reducing your benefits substantially. At age 65, there's less of a reduction. So if you've saved well for retirement and want that money to enjoy life more while your health is still in good shape, then it pays to let yourself have it.

Say you have enough savings to pay for your essential needs, but there's not a ton of money left over for things like travel. If claiming Social Security at 65 makes it possible to take a few trips a year, it could be worth filing for benefits ahead of full retirement age rather than risking reaching a point where your body won't cooperate with your plans.

One bad reason to claim Social Security at 65

Filing for Social Security at 65 makes sense when you can't continue working and need the money, or when you want the money for a specific purpose and can afford the reduced monthly checks. But you shouldn't claim Social Security at 65 because you think you won't be able to enroll in Medicare without it.

While Social Security and Medicare are related, they're two separate programs. Medicare eligibility begins at 65, but you can enroll without starting Social Security.

In that case, you'll have to pay your premiums directly, whereas dual enrollees pay their Part B premiums out of their Social Security benefits. But that's an easy thing to do. So don't let Medicare be the sole reason you file for Social Security at 65 when your preference is actually to wait.

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