If you're like most people, the earliest you can claim Social Security benefits is age 62. Waiting until later, though, will increase the size of your monthly checks . Still, there are plenty of reasons you may prefer to begin receiving Social Security benefits at 62.
Image source: Getty Images.
Motivated by necessity
You've probably heard that you should postpone claiming Social Security for as long as possible to maximize the amount you receive. That one-size-fits-all advice does not work for everyone. Often, claiming benefits at 62 is a necessity.
Issues like job loss, health problems, or needing the money to cover the basics can all push you toward making an earlier-than-expected claim. It may not necessarily be what you wanted, but it was the most prudent thing to do given your circumstances.
Necessity is the most common reason Americans claim Social Security sooner rather than later. However, not everyone who makes a claim at 62 does so because they don't have options. Here are some less common reasons you might decide to take Social Security early.
You're expecting a long retirement
According to the Census Bureau, the average life expectancy for a man aged 62 is approximately 19.61 years. For a woman, it's 22.50 years. If you're in relatively good health and come from a family that tends to enjoy long lives, you may want to spend as many years as possible collecting the Social Security you've spent decades paying into, even if it means collecting less in total than you would have if you'd waited until age 67 or 70 to collect.
Let's face it: At 62, you may simply be ready to enjoy the rest of your life without the burden of a job.
You're expecting a shorter retirement
On the other hand, if you're dealing with serious health issues and it doesn't look like you'll live long, why not take the money you've worked for and enjoy the years you have left? As long as you have enough money to cover your expenses, early retirement may help you enjoy your remaining time.
Don't forget that you won't be eligible to apply for Medicare until three months before your 65th birthday, and healthcare is a significant consideration in any post-retirement budget. Make sure you have an alternate source of health insurance set up. If you're married and your spouse plans to continue working, that may be the easiest way to maintain coverage.
Your job is physically taxing
An Economic Policy Institute report found that roughly half of older workers (aged 50 to 70) have physically demanding jobs, with more than half working in environmentally hazardous conditions. Whether you're physically taxed by your day-to-day work, a challenging work schedule, or a high-pressure job, it makes sense to want to remove yourself from the situation.
Whether you have plenty of money put away to retire from a difficult job early or supplement Social Security benefits by taking on something easier on your body (and soul), taking care of yourself is crucial.
You consider Social Security supplemental income
The average Social Security check is around $2,000, or $24,000 annually. If you have other sources of income, like stock dividends, bonds, annuities, a pension, or a part-time job you can count on to make up the bulk of your income, you've not only planned well, but you've positioned yourself to retire a bit early.
You've earned it
According to the Center for Retirement Research at Boston College, workers feel a sense of ownership about Social Security benefits after years of payroll taxes being deducted from their paychecks. They are anxious to claim what is theirs. That desire may be amplified by concerns that Congress won't come up with a funding solution that prevents benefits from being cut.
There are clear pros and cons associated with claiming Social Security at age 62. However, the decision is strictly yours to make. Your best bet is to put pen to paper to determine your expected income sources and expected post-retirement expenses. Once you have those two figures, you'll have a good idea if retiring at 62 is a legitimate option.
