Why Filing for Social Security at 62 Can Sometimes Be the Best Choice

Social Security is a crucial retirement benefit for many older Americans. For a large number of retirees, it helps cover basic expenses and makes the difference between getting by and falling short each month.

That is why the timing of your claim matters so much. Your monthly benefit is based on your earnings record, but the age you choose to file also affects how much you receive.

Although claiming at 62, the earliest possible age, permanently lowers your monthly benefit, there are situations where filing then may be the smartest move.

How filing at 62 can reduce your monthly benefit

You can collect your full Social Security benefit at your full retirement age, or FRA. For people born in 1960 or later, FRA is 67. If you begin benefits at 62 instead, and your FRA is 67, your check is cut by 30%. So if your full benefit would be $2,000 a month, you would receive $1,400 instead.

That smaller payment can be hard to absorb over time, especially if you do not have other income to help fill the gap. Smaller checks also mean any cost-of-living increase will be smaller in dollar terms.

When claiming at 62 can make financial sense

Starting benefits at 62 always lowers your monthly payment, but it does not always reduce your total lifetime Social Security income. If you have serious health issues and do not expect a long retirement, filing early may be the better decision.

For example, if your FRA benefit is $2,000 but that drops to $1,400 at 62, and you live only until age 75, you would collect $192,000 by waiting until 67, but $218,400 by claiming at 62. That is a difference of $26,400 in favor of filing early.

The reason is simple: you would receive payments for an extra 60 months, and those added checks can outweigh the smaller monthly amount.

The shorter your expected lifespan, the more likely an early claim will pay off. If you were to live only until 72, the gap between claiming at 67 and claiming at 62 would be even larger. As uncomfortable as it may be, health and life expectancy should be part of the decision.

Other situations where an early claim can work

Poor health is not the only reason to consider filing at 62. If you have saved enough for retirement, can handle smaller monthly checks, and want to use Social Security for a near-term goal, early filing may still make sense.

That goal could be traveling while you are still physically able to enjoy it. It could also mean leaving a stressful job sooner, or stepping away from a job that is acceptable so you can help care for a family member. If your budget can support the reduced benefit, claiming at 62 can still be a reasonable choice.

Do not overlook survivor benefits for your spouse

If you are married and are the higher earner, your claiming decision can affect more than just your own benefit. If you die first, your spouse may be eligible for Social Security survivor benefits, which are generally based on the amount you were receiving.

Claiming at 62 would not only reduce your own monthly benefit, but could also lower the survivor benefit your spouse might later receive. That is an important factor to weigh, especially if waiting longer would leave your spouse better protected even if it reduces the total amount you collect during your lifetime.

The bottom line

Even with savings, Social Security can be a major part of retirement income, so it pays to think carefully about when to file.

Many experts argue that claiming at 62 is a mistake because it permanently lowers monthly income. If you do not have enough savings to offset that reduction, you could face a tighter budget for years.

Still, if you do not expect a long retirement, filing at 62 may leave you with more total Social Security over time. Just be sure to consider your spouse as well. If survivor benefits will matter, waiting beyond 62 may be the better strategy, even if it means less total income from Social Security for you alone.

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