The Top 5 Reasons to Claim Social Security at 62

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There are a number of important decisions you might have to make as retirement gets closer. Where will you live? Will you help support your grown children? And what will you do about Social Security?

The earliest age you can claim Social Security is 62. But you can’t get your monthly benefits without a reduction until full retirement age arrives. That age is 67 if you were born in 1960 or later.

Filing for Social Security at 62 will result in a significant hit to your monthly benefits, so it’s not a decision to take lightly. But here are five good reasons to claim Social Security at 62 despite that reduction.

1. You’re out of work and can’t get rehired

It’s an unfortunate fact that if you’re downsized out of a job or let go during a restructuring, it can be very difficult to get rehired in your 60s. Many companies don’t want to invest in older workers because they assume you’re close to retirement and may leave a year or two after being hired.

If you’ve lost your job and need money, and you don’t want to raid your savings just yet because the market isn’t where you want it to be, then that’s a good reason to claim Social Security at 62. The income could spare you a world of stress as you try to figure out your next steps.

2. You’ve been forced to work part-time

It may be that your job didn’t go away completely, but you’ve been forced to reduce your working hours. This could be due to having to care for an aging or sick relative, or due to health issues of your own.

Social Security could be a good supplement to part-time wages you’re able to earn. If you don’t have savings to tap or aren’t ready to withdraw from your nest egg, filing benefits at 62 could help ensure that you’re able to cover your living costs.

3. You don’t expect to live a long life

While claiming Social Security at 62 will result in reduced monthly benefits, it may not result in less lifetime income. And if you end up passing away at a fairly young age, you could end up with more lifetime income by claiming benefits at 62.

If your health is poor and you don’t expect to live beyond your early 70s, filing for Social Security at 62 makes financial sense. Plus, in that situation, you deserve to enjoy the rest of your time to the fullest. Those monthly benefits could give you the leeway to live more comfortably.

4. You have a need for money immediately

Sometimes, surprise expenses arise when we don’t expect them to. If you have a large expense looming, like a new car or a home repair, and you don’t have the savings to cover it, Social Security could help.

Even though claiming Social Security at 62 will result in reduced benefits, that may be a better solution than racking up expensive debt to pay for an unplanned bill. If you take on debt later in life, you could end up stuck with it for years on end.

5. You’ve saved well and want to enjoy the money sooner

Some people claim Social Security at 62 out of desperation. But if you have good savings, you may decide that you’ll file for benefits at 62 simply to enjoy the money while your health is strong and you can make the most of that cash.

If your nest egg is large enough to cover your living expenses, a reduced monthly Social Security benefit may not hurt you financially in the long run. That way, you can use the money at a time when it’s likely to bring you the most joy.

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