Will Claiming Social Security at 62 Hurt You Financially? Maybe Not.

There's a reason financial experts often caution against claiming Social Security at age 62, the earliest age to file for benefits. Signing up at 62 means having to accept reduced Social Security benefits for life.

For people born in 1960 or later, Social Security's full retirement age is 67. That's when they can claim their benefits without a reduction. Filing at 62, by contrast, slashes benefits by 30%.

But while claiming Social Security at 62 might lead to smaller checks on a monthly basis, it's not necessarily a terrible move. It could actually be a brilliant one.

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The math could work out in your favor

If you claim Social Security at 62, you're guaranteed to shrink your benefits on a monthly basis. But that doesn't mean you'll reduce them on a lifetime basis. And if you don't end up living a very long life, filing at 62 could still work out very well financially.

Let's say your full retirement age benefit is $2,000. If you file at 62, your monthly check will only be $1,400. But with a shorter lifespan, an early claim could put more money in your pocket in total.

Imagine you end up living until 75. In this example, filing at 67 gives you a total of $192,000 in Social Security. Filing at 62, by contrast, gives you a total of $218,400 -- a difference of $26,400.

Of course, you don't know how long you'll live when you sit down to file for Social Security. But you can use your health and family history as clues. If you have multiple medical conditions that are likely to shorten your lifespan and parents who passed away in their 70s, an early claim might be your best bet.

And if you end up living more of an average lifespan, guess what? In that case, you'll probably mostly break even on lifetime Social Security income.

The program is actually designed to pay you roughly the same amount regardless of your filing age if you live an average lifespan. In that case, reduced benefits due to filing early are offset by a larger number of monthly checks collected.

Don't write off age 62 as a claiming option

You might hear plenty of advice along the lines of "filing for Social Security at 62 is dangerous." And it's true that you may be taking a risk.

But if you don't end up living very long, an early claim could reward you with more money in your lifetime. Just make sure to pay attention to different factors before making that call.

If you're married, for example, and your spouse is the lower earner in your household, they may be eligible for survivor benefits after you die equal to 100% of your monthly checks. So in that scenario, claiming early may not be the best choice, even if it puts more money in your pocket in total. If your spouse outlives you by many years, reduced survivor benefits could create a true hardship.

But all told, the math on claiming Social Security at 62 can sometimes work out in your favor. So don't assume off the bat that it's the wrong choice.

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