Social Security at 62 Isn't Always a Disaster. Here's When It Could Work Out.
Key Points
A Social Security claim at 62 reduces your monthly checks for life.
If you have a lot of savings and don't need the money per se, early access to it could be a positive thing.
If you don't have a spouse to worry about and are concerned about a shorter lifespan, an early claim could pay off.
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There's a reason so many financial experts warn against claiming Social Security at 62. Since it's the earliest age to take benefits, filing at 62 generally means locking in reduced monthly checks for life.
If your full retirement age is 67, which applies if you were born in 1960 or later, claiming Social Security at 62 means accepting benefits that are 30% lower. That could make it harder to pay your bills in retirement or have money for extras that make life more enjoyable.
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But that doesn't mean claiming Social Security at 62 is a poor choice in every scenario. In these situations, it's a decision that could work out well.
When you have plenty of savings
If you need Social Security to pay your mortgage, buy food, and cover utilities, reduced monthly checks could put you at risk of not being able to keep up with your basic expenses. But if you have a nice amount of savings and plan to use Social Security as bonus money for things like travel and hobbies, filing at 62 may not be a bad choice.
If you claim benefits at 62, you'll get an opportunity to use that money when you're younger. That could mean taking the world trips you've dreamed of before mobility issues creep in or enjoying local nightlife while you still have the energy to stay up late.
When you don't expect to live a long life
It's impossible to know exactly how long you'll live. But if you have health issues and don't anticipate living a very long life, claiming Social Security at 62 could result in more lifetime income despite reduced benefits every month.
One thing you'll need to factor into that decision is if you're married. If you are and you're the higher earner in your household, an early claim doesn't just reduce your monthly Social Security checks. It also reduces survivor benefits your spouse might be entitled to.
But if you don't have a spouse to worry about, whether because you're not married or because they're the one with higher lifetime earnings, filing for Social Security at 62 could be a smart move if you have reason to believe you won't live past your mid-70s.
It's important to understand the financial impact of claiming Social Security at 62 before finalizing that decision. But filing for benefits as early as possible isn't always an unwise move -- even if some of the experts out there like to caution against it. The key is to take your personal circumstances into account when making your choice.
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