Key Points
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It’s common to claim Social Security at 62 since it’s the youngest age to sign up.
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Filing at a later age makes sense when you don’t have a lot of savings.
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It’s important to look at different factors when deciding when to claim benefits.
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One nice thing about Social Security is that you’re not locked into signing up at one specific age. Rather, you can sign up at any point once you reach age 62. And since 62 is the soonest you can sign up, it’s the most popular age for claiming Social Security.
Of course, there’s a big downside to claiming Social Security at 62 — you’ll shrink your monthly benefits for life. Assuming full retirement age is 67 for you, filing at 62 means slashing your benefits by 30%.
You may be interested in claiming Social Security at 62 despite that hit to your benefits. But is that the right filing age for you?
Why you may want to wait on Social Security
It’s easy to see why you’d want to get Social Security as soon as you’re eligible. But before you make the decision to claim benefits at 62, consider a couple of things.
First, filing at a later age makes more sense when you don’t have much money saved. An estimated 20% of Americans ages 50 and over have no funds set aside for retirement, reports AARP. If you’re in that boat, or your savings are minimal, your goal should be to score a larger ongoing Social Security benefit to make up for that.
Secondly, if you end up living a long life, claiming Social Security at 62 could leave you with less money in benefits all-in. And while you can’t predict how long you’ll live, if you have great health in your early 60s plus a family of long lives, those are indications that a later filing could make more sense.
Questions to ask before claiming Social Security at 62
Just because 62 is the most popular age to claim Social Security doesn’t mean you should sign up then. To figure out when to file, ask yourself these questions:
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Can I pay my bills in retirement based on my savings alone? If not, you may want to wait to claim Social Security for larger checks.
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Am I likely to live a long life? If so, waiting could pay off.
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Is it reasonable for me to keep working? If your job isn’t in jeopardy and it’s not particularly stressful, it could pay to keep at it a few more years, which should make it pretty easy to hold off on claiming Social Security.
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Is there something specific I want or need the money for? It’s one thing to claim Social Security at 62 and use the money to make home renovations or travel. But if you can cover those costs with savings, it could pay to let your monthly benefits grow.
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Do I have a spouse who’s likely to outlive me? If so, they should be eligible for survivor benefits from Social Security once you pass away. And if you wait beyond 62 to claim benefits, you’ll be setting them up for larger checks in your absence.
It’s also a good idea to talk to a financial advisor about your Social Security filing options. They can review your complete retirement income picture, including expenses and goals, to help guide you in that decision.
And to be clear, an advisor might tell you it’s totally fine to claim Social Security at 62. But it’s good to have that conversation so you can file for benefits with more confidence.
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