There's no arguing that delaying Social Security until age 70 will get you the largest possible monthly checks. The Social Security Administration rewards you for each month you wait by slowly growing your benefit. Still, that doesn't mean waiting to sign up is always your best option.
You want your Social Security benefits to work for you. For some, that means helping maintain financial security in the present. For others, it means covering as many retirement costs as possible. But if any of the following three things apply to you, signing up earlier -- even right away at age 62 -- is probably the best option.
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1. You don't expect to live long
Delaying Social Security can be a risky move for those with shorter life expectancies because there's a chance they could die before they're able to claim anything from the program at all. Or they may only get checks for a couple of months or years.
No one knows for sure how long they'll live, but if you have a poor personal or family health history, early claiming might appeal to you. It's important to consider whether your claiming early might have an impact on family members down the road, particularly those who might get survivor benefits after you pass away. However, signing up right away at 62 could enable you to get the most money from Social Security while you can.
2. You need help covering your expenses now
It makes sense to claim Social Security as soon as possible if you have no other way to cover your essential expenses, like your rent or mortgage payment or grocery bill. Without your benefit checks, you might be forced to take on debt, and that could hurt your long-term financial security.
In this case, claiming earlier may mean settling for a smaller lifetime Social Security benefit, but it could still be the way to go. Delaying benefits would get you more money later, but those larger checks can't fix everything. If, for example, you had to leave your home because you couldn't afford the mortgage payments, a bigger Social Security benefit later in retirement won't give you that house back.
3. There are others who could claim on your work record
You may already know that your spouse can claim a Social Security benefit on your work record if it's worth more than what they're entitled to on their own. But they're not the only ones who can do this. Dependent children may also qualify for checks on your work record if they're minors or disabled. But none of your family members can claim these benefits unless you apply for Social Security first.
If there are one or more members of your household who could claim a benefit on your work record, it might make sense for you to sign up for Social Security earlier than you would if you were on your own. You can take advantage of the extra checks to cover more of your monthly expenses.
However, you'll have to weigh the immediate benefits of more money against the long-term effect of possibly getting a smaller lifetime benefit for yourself by applying early. Make sure you're comfortable with your decision before you apply.
If none of the three situations above apply to you, delaying Social Security could be a better choice. Just make sure you have enough personal savings or other sources of retirement income to cover your expenses until you're ready to sign up.
