When it comes to choosing the age at which to start taking Social Security, many experts advise against claiming early. While you can file for benefits as early as age 62, the longer you wait (up to age 70), the more you'll receive each month. In fact, waiting until 70 to start collecting checks will result in receiving your full benefit amount plus a bonus of at least 24% per month for the rest of your life.
But that doesn't mean claiming at 62 is always a bad decision. There's no single correct age at which to begin taking benefits. In some cases, filing as early as possible is the smartest move you can make.
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When it's best to take Social Security at 62
Delaying benefits is often best if you want to maximize your monthly payments, but it's a very permanent (and sometimes regrettable) decision. Life can throw plenty of curveballs, and nobody knows precisely how their retirement will pan out.
If you delay benefits until age 70 and then develop health issues shortly after, you may not have as much time as you'd planned to enjoy your senior years. Or if you simply change your mind and wish you'd started taking Social Security sooner, you can't go back in time for a do-over.
Filing early, then, has two distinct advantages:
- You don't have to bet on your longevity: Claiming at 62 will result in smaller payments each month but also make it easier to retire earlier. If you end up living a much longer-than-average life, you may have received more in total by delaying benefits. But you also don't need to spend your 60s worrying that your health might start declining before you've had a chance to enjoy your retirement.
- You have the ability to change your mind: If you claim Social Security early, you have 12 months to change your mind and withdraw your application. You can only do this once, and you'll need to repay everything you've received in benefits so far. But if you claim early and change your mind, you have more flexibility than if you'd delayed benefits.
Thinking about your health and life span may not be the most pleasant exercise but can help you decide whether claiming early is right for you. And if you're truly on the fence, knowing that you can reverse your decision if you file too soon can make it less daunting.
The biggest risk of filing early
Collecting smaller checks each month is the biggest drawback of claiming at 62, and it's a serious one to think about. The average benefit amount among retired workers, as of October 2023, is around $1,844 per month.
Say, for example, you have a full retirement age of 67 years old and by filing at that age, you'd collect $1,800 per month. If you were to file at 62, your benefit would be permanently reduced by 30% -- leaving you with $1,260 per month. But if you were to delay until 70, you'd collect your full $1,800 per month plus a 24% bonus, or $2,232 per month. That's a whopping $972 more per month than you'd receive by filing at 62.
Delaying benefits by a few years may have its downsides but, financially, it's often the best move. If your primary goal is to maximize your monthly income, waiting until age 70 to take Social Security could be a better decision than filing early.
It's not easy deciding at what age to begin claiming benefits, as there's no one-size-fits-all answer. By considering the advantages and disadvantages of taking Social Security at 62, it will be easier to decide whether it's the right move for you.
