There's a reason so many people rush to claim Social Security early. They want to get that money once they're eligible to get their hands on it so they can stop working -- or start working toward different goals, like getting to travel and pursue hobbies they didn't have time for while managing careers.
When we talk about claiming Social Security early, we're talking about filing for benefits prior to full retirement age (FRA). That age is 67 for anyone born in 1960 or later.
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The downside of claiming Social Security early is having to accept a reduced monthly benefit for life. In fact, retirees are often warned not to sign up for benefits too soon, especially if their savings leave much to be desired.
I hope to one day be in a position to claim Social Security well ahead of FRA (you can file as early as age 62). But it's not a matter of getting my money sooner -- it's a matter of peace of mind.
What an early Social Security filing means to me
For some people, an early Social Security filing means getting their hands on their money at a younger age. It's that simple.
In my mind, though, being able to claim Social Security early would mean that I've saved enough to have a reduction in my benefits not matter or be a problem. And so to put it another way, for me, filing for Social Security early means getting the peace of mind that I've done a good enough job saving, and that I don't have to worry about money once retirement kicks off.
See, you'll often hear that it's not a good idea to claim Social Security early because it leaves you with a lower benefit for life, and that's something a lot of retirees can't afford. But I'll be the first person to argue that filing early does make sense when you have plenty of money outside of Social Security.
In that case, why force yourself to wait on those benefits if they might make it possible to engage in the activities you've always been interested in at a time when your health is still in decent shape? If you're not desperate for retirement income, then you might as well do the things you've always wanted at a younger age rather than wait and risk being thwarted by health issues.
A tough choice to make
Because I'm nowhere close to retirement age, I have not made a firm decision on when to claim Social Security. And frankly, that's not something I feel compelled to do anytime soon.
But what I do know is that if the option to claim Social Security early exists for me, it will mean, in my mind, that I've done a solid job of building up a retirement nest egg. And for that reason alone, I hope to be in a position to sign up for Social Security early -- even if I don't actually do it.
