Deciding When to Claim Social Security: Should You Start at Age 62?

Pros and Cons of Claiming Social Security at Age 62

Deciding when to claim Social Security retirement benefits involves several considerations. Choosing when to begin collecting Social Security retirement benefits ranks as one of the most important retirement decisions you'll make. Many Americans take Social Security as early as possible, at age 62.

Why 62 could be great for you

• The first group: People who are financially secure and eager to retire early.
• The second group: Those who can retire comfortably by combining Social Security with work.
• The third group: Individuals facing health issues or job loss who need financial support.

Regardless of the group you fall into, your expected longevity plays a significant role in this decision.

Consider the drawbacks

• Penalty for early claiming: Benefits reduced significantly if claimed before full retirement age (FRA).
• Incentive to delay: Benefits increase for each month you delay claiming until age 70.
• Healthcare costs: Waiting until age 65 could be advantageous due to Medicare eligibility.
• Income deduction: Social Security Administration deducts from benefits if you continue to work and earn above certain limits.

While many seniors claim at 62, an analysis suggests waiting until 70 may be financially beneficial for the majority.