You should begin collecting your money as soon as possible.
When it comes to filing for Social Security, you have several options. If you wait until full retirement age (FRA), which is either 66, 67, or somewhere in between, to sign up, you’ll receive the full monthly benefit based on your wage history. If you file after FRA, you will receive a higher monthly benefit for the rest of your life.
However, there is an option to sign up for benefits prior to FRA. In fact, the earliest age at which you can claim benefits is 62, which is a popular choice among seniors. Here are a few compelling reasons to apply for Social Security at the age of 62.
1. You must.
You may not intend to retire at the age of 62. But what if your company is forced to reduce its workforce and you find yourself on the chopping block?
If you are laid off, you may have difficulty finding a new job (because, let’s face it, companies aren’t always eager to hire older workers). And if that’s the case, and you need money right away, filing for Social Security may be your only option.
2. You wish to
Some people reach retirement age with little to no money in their personal savings plan. But what if you find yourself in the opposite situation?
If you have a sizable nest egg, you may feel perfectly comfortable filing for Social Security at the age of 62, even if it means reducing your benefits. After all, if your nest egg can support you and cover your essential bills, you may choose to use the money you receive in benefits to travel or indulge in more expensive hobbies while your health is still in good enough shape to cooperate.
3. Your body is telling you that Social Security is designed to pay you the same total amount of money over the course of your life, regardless of when you first file for benefits.
Consider this: if you claim Social Security at the age of 62, your benefits will be reduced but you will receive more years of payments. If you wait to file, you will receive more money each month but fewer individual payments.
If you live an average lifespan, you should be able to break even. However, if your health is poor and you suspect that you will not, your best bet may be to file for Social Security as early as possible. This could result in you receiving more money from the program overall.
What is the correct decision?
There are numerous scenarios in which it is advantageous to file for Social Security at FRA or later. If your health is excellent and you believe you will live longer than the average senior, filing later will generally result in a larger total lifetime benefit. And if you’re approaching retirement with virtually no money in your IRA or 401(k), you may require a larger monthly benefit to compensate.However, there are numerous situations in which filing for benefits as early as possible makes sense. And if any of the above apply to you, you should seriously consider filing for Social Security at the age of 62.