The fact that seniors get to choose their Social Security filing age can be a blessing as well as a curse. On the one hand, it's nice to get options. On the other hand, the decision to start taking benefits is a really tough one, and it's one that many seniors inevitably struggle with.
The earliest age at which you can claim Social Security is 62. But you won't be entitled to your full monthly benefit based on your earnings history until you reach full retirement age, or FRA. FRA kicks in at age 67 for anyone born in 1960 or later. And for each month you claim Social Security ahead of FRA, your monthly benefits get reduced.
You'll often hear that signing up for Social Security at age 62 is a mistake, since it will result in a guaranteed lower monthly benefit for life. But while that move may be a mistake for some people, it's not necessarily a mistake for you.
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The upside of claiming Social Security early
Filing for Social Security at age 62 means accepting a much lower monthly benefit for life compared to what you'd get by waiting until FRA. But getting your money sooner could also do a lot of good things for you.
Maybe you've been itching for a career change, but you're worried about your income taking a huge hit and not being able to cover your bills during that transition. Claiming Social Security at 62 could make it possible to switch careers and move to a field that's far more rewarding. That could, in turn, allow you to stay in the workforce for many more years, as opposed to rushing to retire in your early 60s after having fallen victim to burnout.
Also, it may be that your current job is negatively impacting your health. Claiming Social Security at 62 could mean getting to move to a less stressful job -- one that doesn't perpetually increase your stress level and make you miserable all the time.
Finally, you should know that if you're in poor health and are therefore unlikely to live a long life, you might benefit financially by claiming Social Security at 62. While you'll reduce your benefits on a monthly basis, you might come out ahead income-wise on a lifetime basis by virtue of getting to start receiving that money much sooner.
Do what's good for you
Many financial experts advise against filing for Social Security at 62. After all, those monthly benefits are guaranteed for life, whereas your retirement savings could run out of money. So slashing a guaranteed income stream could be a risky move.
There's definitely truth in that line of thinking. But that doesn't automatically mean that claiming Social Security at 62 is a decision you'll end up regretting. So rather than push yourself to wait on Social Security, think about your own needs and circumstances. You may find that it's far easier to make the case for an early Social Security filing than a later one.
