There's no denying that Social Security benefits increase after age 62 and it's good to understand how to maximize them. What's less discussed is why people may choose to retire at age 62 and how it's the right choice for many.
No two people are exactly alike, and what seems like an odd course of action for one person may make perfect sense to another. Here are some reasons people might bid adieu to the workplace earlier rather than later.
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1. Immediate access to Social Security benefits
Clocking out for the last time makes sense for those whose jobs make them sick (physically or mentally). It may be that the last layoff was one layoff too many, or someone just wants to put the rat race behind them. Or they might worry about the Social Security trust fund running dry in 2032 and what will happen if Congress can't come up with a bipartisan way to repair the program.
2. Time is finite
The older a person gets, the more likely they are to recognize that time is a finite resource they can't get more of, no matter how much money they bring in each month. Retiring at 62 allows a person to travel, spend time with family, and enjoy hobbies. This may be especially important to someone who fears they won't be healthy enough to enjoy retirement if they wait until full retirement age (FRA) to take the leap.
3. Invisible issues
It's not always possible to look at another person and know if they're seriously ill and/or expected to have a shorter-than-average lifespan. For some, waiting for the "break-even point" to retire and claim Social Security makes little sense.
4. The desire to find a new challenge
In some cases, a person might retire at 62, leave a job they no longer enjoy, and find part-time or full-time work they love. If the income from the new job isn't enough to cover the bills, Social Security benefits can help fill the gap.
5. They've become caregivers
Getting older often means looking out for aging parents, a sick spouse, or an ailing friend. Becoming a caregiver later in life is something most people don't think about as they're growing up. However, it's a reality for millions. According to the Family Caregiver Alliance, more than 1 in 6 Americans working part-time or full-time report caring for an elderly or disabled family member, relative, or friend.
If you find yourself wondering when you can retire, you may want to meet with a financial advisor to get a clear picture of what you can expect financially. There's no one-size-fits-all perfect time to retire. Ultimately, you have to do what's best for you -- even if it means leaving the workplace at 62.
