Social Security benefits first become available to you when you're 62. But you'll see lots of advice telling you not to start them so young. The problem is that if you begin your retirement benefits so early, you'll get a significantly reduced monthly payment compared to your standard benefit or the amount you'd be entitled to if you delayed.
But while it's indeed true that you'll get a smaller monthly check due to early filing penalties, that doesn't mean you shouldn't begin your benefits then. In fact, there's one really great reason to start collecting your checks at age 62. Here's what it is.
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Starting Social Security at 62 could be the key to your freedom
If you're eager to stop working and start enjoying your retirement and you can make it happen -- but only if you claim Social Security -- then starting your benefits at 62 can be well worth it. As long as you won't put yourself at risk of having too little money for the rest of your life if you make this choice, there's very little reason for you to keep toiling away at your job when your freedom is within reach.
No one knows exactly what is going to happen in the future. It doesn't do you much good to work for an extra five, six, seven, or even eight years, only to retire and get sick at 70 and not live long enough to break even for the benefits you missed or not be able to enjoy your larger Social Security checks.
If your Social Security combined with your retirement account distributions (at a reasonable withdrawal rate) will provide you with the money you need both now and in the future, you may as well file for benefits and begin doing the things you have been dreaming of. Getting a few hundred extra dollars per month for the sake of it isn't worth giving up all those years of traveling the world, gardening, or hanging out with your grandkids.
Make the right choice for your lifestyle
Now, you do need to make sure that you understand how much your benefit will be, what your income from Social Security and savings will be, and that you won't be leaving your spouse in a bad position (since claiming your own Social Security early can also shrink their survivor benefits if you were the higher earner).
But once you have done your due diligence and made sure that there will be enough money with your reduced Social Security check, you should make the choice that's based on the lifestyle you want to live.
Social Security isn't there to make you rich, and the goal doesn't have to be to maximize every dollar in all situations. Sure, you might get less in lifetime benefits if you claim Social Security at 62 (depending on how long you live). And it might make sense on paper to try to boost your benefit as much as possible.
But life isn't about math, or even about ending up with the biggest bank account. Eight extra years of freedom from retiring at 62 rather than 70 may be priceless to you -- as it is to many -- and if that's the case, and you won't end up broke by doing it, then claiming Social Security at 62 is absolutely the right decision for you.
