3 good reasons to take Social Security benefits at 62
They say patience is a virtue, and when it comes to Social Security, many older people do not have it. Age 62 is the most popular age to sign up for benefits, although filing also reduces lifetime benefits.
Older people are entitled to their full monthly Social Security benefits based on their income history when they reach full retirement age, which ranges from 66 to 67, depending on the year of birth. Beneficiaries can sign up to start receiving benefits as early as age 62, but doing so will significantly reduce their monthly benefit.
Given the number of seniors who are behind Pension saving, it’s a blow that many can’t afford to take. But despite this, here are some good reasons to file your benefits yourself at age 62.
1. You can’t stand your work and it harms your health
Some people love what they do for a living and put off retirement just so they can keep going. But if you’re in the opposite boat – you despise your boss, your job is a drag and the pressure involved is bad for your health – then there comes a time when you can only push yourself to stay in a miserable situation for so long. . Filing for Social Security at age 62 could give you the freedom to live without that paycheck — and preserve your mental and physical health in the process.
2. You want to start your own business
Many seniors make the decision to open a business in retirement. If that’s one of your goals, filing for Social Security early could also help you get started early. And if your business proves successful enough, the revenue it generates could more than compensate for a lower monthly benefit.
3. You are not a player
Filing for Social Security at age 62 is guaranteed to reduce your benefits — but it’s also guaranteed to put that money in your pocket sooner. If you don’t end up living a very long life, you could easily qualify for a higher lifetime Social Security benefit by claiming benefits at age 62. And while there’s no way to predict your own lifespan, collecting benefits earlier in life could give you peace of mind that you took advantage of Social Security while you could.
Let’s be clear – claiming Social Security at age 62 is not the right decision for everyone. If your health is excellent and you have a family history of longevity, you might be better off applying for benefits at full retirement age or even beyond (you can delay your benefits beyond this point and increase them in the process). But if any of the above scenarios resonate with you, it might be worth jumping on Social Security as soon as you can. As long as you understand the financial repercussions involved and take the time to think things through, filing for benefits at age 62 could end up being one of the best decisions you can ever make.