5 Reasons to Claim Social Security at Age 62

One of the most common pieces of financial advice today is to postpone claiming Social Security until age 70. And if you're further behind in retirement planning than you'd like to be, it might make sense. After all, delaying Social Security until 70 means your monthly benefit would be 24% higher than it would be at full retirement age (about 67 for most Americans). On the other hand, claiming Social Security at age 62 will permanently reduce your monthly benefit by as much as 30%.

Still, there are plenty of reasons you might consider claiming Social Security benefits as soon as you're eligible. Here's the top five.

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1. You need the benefits now

If you've done everything to land a job but can't find one, you may consider filing for benefits. If you're burned out at a job you intensely dislike and need to get away, it makes sense to examine your options. Ideally, you could pull money from other sources (like a retirement account) to cover bills until you reach FRA, but that's not always possible.

Perhaps you're considering a move from a full-time to a part-time job, but you won't earn enough to cover your living expenses. If the only way you can pay bills now is by claiming benefits at 62, it's a legitimate reason to crunch the numbers to learn if it will work. Keep in mind that you can't sign up for Medicare until age 65, so you'll need to nail down an alternative source of healthcare coverage if you lose you employer's insurance.

2. You can afford to

A whopping 69 million Americans receive Social Security, and two-thirds of seniors rely on benefits for at least half their income. But that may not be you. If you've already put enough away to pay your bills without relying on Social Security, it doesn't matter as much if you claim benefits at 62.

3. You have big plans

If you have goals and worry that waiting until full retirement age won't leave you enough time to fulfill those dreams, claiming Social Security early may make sense. Maybe you want to start a theater troupe, open a small mom-and-pop shop, or sell all your possessions and spend the next two decades moving from country to country.

Dreams can't always be postponed. If that's the case for you, it's a good reason to weigh the pros and cons of filing for Social Security benefits early.

4. You need to stop working

A May 2023 study by the Economic Policy Institute found that 50% of U.S. workers aged 50 or older have physically taxing jobs. Further, 1 in 7 older workers (14.1%) reported being the victim of abusive or violent behavior at work.

As many as 40% of older workers report retiring earlier than planned, with 35% citing health problems and disability as the reason. No matter how many precautions you take, you can't control something like a serious fall or an unexpected illness.

5. You're committed to being the healthiest version of yourself

Maybe you're physically and emotionally worn out, or perhaps you work in a high-risk profession. Whatever the reason, some studies suggest that retiring has health benefits.

Yes, there will be challenges. For example, you'll need to make a concentrated effort to keep your mind agile, socialize with friends and family, and find great reasons to wake up each morning.

On the other hand, a study published in the American Journal of Preventive Medicine found that retirees sleep better, reduce their sitting time, and become more active. The study, "Retirement – A Transition to a Healthier Lifestyle?" followed more than 25,000 adults for about three years. It tracked factors like physical activity, diet, alcohol use, sedentary behavior, and sleep patterns.

The lead researcher, Dr. Melody Ding, said that the research revealed that retirement is associated with positive lifestyle changes compared to those of people who are still working. Ding found that retirement may have given people the opportunity to make positive lifestyle changes, setting aside negative routines they had fallen into.

Even after adjusting for factors such as sex, age, urban/rural living, marital status, and education, researchers call the differences "significant."

While collecting Social Security benefits at 62 doesn't guarantee you will automatically be happier or healthier, it may provide you with the time and energy you need to make healthy lifestyle choices.

It's a given that Social Security benefits increase after age 62. What's not so clear is the right decision for you. You've worked hard your entire life, and you're the one who gets to decide when to collect benefits.

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