The No. 1 Reason to Claim Social Security at Age 62
Key Points
Filing for Social Security at 62 will result in a large reduction in your benefits.
If you want to make the most of that money, it may be worth taking the hit if you can afford it.
- The $23,760 Social Security bonus most retirees completely overlook ›
Age 62 is the earliest you can claim Social Security. And so if you file at that point, you'll be looking at a pretty notable reduction to your monthly benefits.
If you were born in 1960 or later and claim Social Security at 67, which is your full retirement age, you'll get your monthly benefits in full. File at 62, and those benefits will shrink by about 30%.
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But if you have a nice amount of retirement savings and you're planning to use your Social Security benefits for leisure, entertainment, and travel, then it could pay to sign up for them at 62 -- despite reducing them in the process.
It's one thing if you'll need your Social Security to pay for food, utilities, and healthcare. In that case, reducing those monthly benefits by filing for them at 62 could be dangerous. But if Social Security is going to be your "fun money" in retirement, then you may want to claim those benefits as soon as possible to maximize good health.
You may not have the same energy to trek through Europe or go to the theater at night in your late 60s or 70s as in your early 60s. So if your goal for that money is to enjoy your post-working years, then you might as well claim those benefits at a time when you can do more with them.
Again, this assumes that you have enough savings to cover your basis needs. But if so, claiming Social Security at 62 could be a very smart move.
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