Thinking about Claiming Social Security Benefits at Age 62? Here's What You Need to Know

Thinking About Claiming Social Security Benefits at Age 62? Read This First

While you might enjoy getting your money sooner, there are consequences you should know about. One of the most significant financial decisions you might make in your lifetime is when to file for Social Security.

You'll be slashing your monthly benefit for life

• Many people are aware that claiming Social Security at age 62 means accepting a reduced monthly benefit for the remainder of their retirement.
• In time, the savings you bring into retirement could run out, leaving you increasingly reliant on Social Security as you get older.

You may have benefits withheld if you work while collecting them

• If you work and collect Social Security prior to reaching FRA, you'll be subject to an earnings-test limit.
• It's important to understand that when you get benefits before FRA, your monthly Social Security checks might shrink if you earn too much.

You stand to reduce survivors benefits for your spouse

• Not only might you share your monthly benefits while you're alive, but once you pass, your spouse will be entitled to survivors benefits from Social Security.
• If you sign up for Social Security at age 62, you'll not only reduce your own monthly benefit, but also reduce the amount your surviving spouse is able to collect each month.

All told, filing for Social Security at 62 carries a lot of weight. It may seem like an easy ticket to early retirement at first, but when you take a deeper dive into the consequences, you may conclude that waiting until FRA or beyond to sign up is really a better choice.