3 good reasons to claim social benefits at the age of 62
Your monthly social insurance You are entitled to the pension when you have reached full retirement age. Your FRA is either 66, 67, or somewhere in between, depending on your year of birth.
In the meantime, you can make social security claims before or after FRA. Go the earlier route and your benefits will shrink, but you will get your money sooner. Delay your submission, and you will earn a higher monthly payday for life.
The earliest age you can sign up for Social Security is 62 and it is also the most popular with seniors. And here are three reasons why it is worth choosing it as the registration age as well.
1. You want to retire early
Many people dream of it Early retirement and work hard to save and make it happen. But you may need a little financial boost outside of your IRA or 401 (k) to get out of the workforce if you want.
As long as you’re sitting at a healthy level of savings and can afford a permanent drop in your monthly benefits, becoming eligible for Social Security at 62 could be a great way to achieve a goal you’ve worked long hard to achieve.
2. You were forced to retire early
Some people do not retire early voluntarily, but because circumstances are forcing them out of working life prematurely.
It could be that you have become unemployed and have difficulty finding someone else. (Unfortunately, the older you are, the harder it is to find employment.) If so, Social Security could help you pay the bills without a paycheck.
Health, too, can mean you have to quit your job in your early 60s. Here too, social security could intervene and fill the gap.
3. You are not in the best of health
Social security is technically designed to pay you the same total lifetime benefit no matter when you apply. The logic is that early filing will give you less benefit but more monthly payments, whereas under FRA you will get fewer payments but more money per month.
However, this rule only applies if you have an average lifespan. If you are in poor health and you think you will die at a relatively young age, it makes more financial sense to get the benefits as early as possible.
For example, if you are eligible for a benefit of $ 1,500 at an FRA of 67, filing at 62 leaves you with $ 1,050 per month instead. But you can also get these benefits five years earlier. If you die at the age of 76, which is relatively young, you will end up making more than $ 14,000 upfront by applying for Social Security when you are 62.
What is the right step for you?
For some people, applying for social security at 62 is the wrong step. For example, if your health is good, delaying submission could provide you with greater lifelong benefits. And if you have saved very little money for retirement, cutting your benefits may not be the best idea.
However, if the above situations apply to you, it is worth getting your hands on your Social Security income ASAP. It could be your ticket to reaching your retirement goals, paying the bills if you hit a brick wall, or getting away with more money from Social Security throughout your life.