Should You Take Social Security at 62? The Pros and Cons of Claiming Early

Are you counting down the years until you’re eligible to collect Social Security? While you can start receiving Social Security benefits as early as 62, deciding whether you should is a much more complicated question.

For some, claiming Social Security early provides financial relief or the flexibility to retire sooner. For others, waiting can result in significantly larger monthly payments for the rest of their lives.

So, should you take Social Security at 62? The answer depends on your health, finances, work plans, and long-term retirement goals.

How Claiming Social Security at 62 Works

Age 62 is the earliest most Americans can begin collecting retirement benefits.

However, choosing Social Security at 62 means you’ll be accepting a permanent reduction in monthly payments, compared to waiting until your full retirement age (FRA), which is between ages 66 and 67 for today's retirees, depending on the year you were born.

If you wait even longer than your full retirement age, your benefit will continue to increase through delayed retirement credits until age 70. After that, there’s no financial advantage to waiting any longer.

The decision isn't simply about collecting sooner or later. It's about balancing a smaller monthly benefit over a longer period versus a larger monthly benefit over fewer years.

The Pros of Claiming Social Security Early

For some, claiming Social Security early makes perfect sense. Here are a few reasons why. 

You’ll Receive Income Sooner

Perhaps the biggest advantage is immediate income.

If you've retired, lost your job, or simply need additional income to cover everyday expenses, collecting benefits at 62 can help you bridge the gap between your savings and monthly bills.

For anyone who doesn’t have significant retirement savings, that extra monthly payment can make a big difference.

You May Enjoy Retirement Earlier

Not everyone wants to work until 67 or 70.

If you've planned carefully and can comfortably afford a smaller benefit, starting Social Security benefits at 62 may allow you to travel, spend more time with family, volunteer, or simply enjoy retirement while you're younger and healthier.

Health Can Influence the Decision

Life expectancy plays a role in every retirement decision.

For someone with serious health concerns or a family history of shorter lifespans, it may be better to begin receiving benefits earlier, rather than waiting a few more years.

Of course, none of us know how long we’ll live, but health is an important part of deciding when to take Social Security.

The Cons of Taking Social Security at 62

Starting benefits early also comes with a few trade-offs. Let’s take a closer look at those. 

Your Monthly Benefit Is Permanently Reduced

The biggest drawback is that the reduction lasts for life.

Depending on your birth year and full retirement age, claiming at 62 can reduce your monthly check by roughly 25% to 30%, compared to waiting until your FRA.

That smaller payment will continue for as long as you receive benefits, including future cost-of-living adjustments.

You Could Receive Less Over a Long Retirement

If you live well into your 80s or 90s, waiting to claim may result in more lifetime income.

Higher monthly payments can also give you a financial cushion later in retirement, when healthcare costs often increase, and unexpected expenses can become more challenging.

Working Can Reduce Your Benefits

Plenty of people continue to work after they’ve started to collect Social Security. However, there’s a cap on what you can earn. Right now, that limit is $24,480. 

If you claim benefits before reaching your full retirement age and earn more than the annual earnings limit, some of your Social Security benefits will be temporarily withheld.

Once you reach your full retirement age, those earnings limits disappear, and your benefit is recalculated to account for the months when payments were withheld.

Questions to Ask Before Claiming Early

Before deciding when to take Social Security, it might be helpful to consider a few important questions:

• Do I need the income immediately, or can I afford to wait?

• Am I planning to continue working?

• What other retirement savings or pensions do I have?

• How is my overall health?

• How long do I expect my retirement to last?

• Would waiting provide greater financial security later in life?

Of course, there isn't one correct answer for everyone. The right choice depends on your individual circumstances.

Is Taking Social Security at 62 the Right Choice?

For some, Social Security at 62 gives them financial flexibility and the opportunity to enjoy retirement sooner. For others, waiting until their full retirement age or even age 70 provides significantly larger monthly payments that can better support decades of retirement.

The best decision comes down to your financial situation, health, work plans, and personal priorities. 

Before claiming Social Security early, you can use the online calculator to estimate your benefits at different ages and consider how each option fits into your broader retirement plan.

Choosing when to take Social Security is one of the biggest financial decisions most of us will make. But, taking the time to compare the long-term trade-offs will help you feel more confident that you're making the choice that's right for you.

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