Why You Should Never Claim Social Security at Age 62

Have you been considering claiming your social security benefits when you reach the age of 62? If so, there are some compelling reasons why you probably shouldn’t. Consider the facts of the situation before you make the decision to file for your Social Security benefits at the earliest possible time. It could make your golden years more prosperous by holding off.

How age affects Social Security numbers

The amount of money that you earn in your life time has a major part in determining the total amount of Social Security benefits you will be awarded when you start claiming your retirement. You are not required to file for Social Security benefits when you turn 62. You can delay filing for benefits and it could boost your Social Security income by 8% per year all the way up to the age of 70. It’s important for you to be aware of the fact that claiming your benefits early, or at the age of 62 reduces the amount of money that you receive by a percentage that is figured for each month that you file early. If your full retirement age is 67 and you can have a reduction of up to 30% if you file at age 62.

Why people file early

The most common age for seniors to file for their Social Security benefits is the age of 62. Even though there are financial drawbacks some feel that they have no alternative because of their ability to find gainful employment, forced retirement trends and for others, it comes down to their impatience for retirement and leaving the work world.

Sobering facts about early retirement

Retirement years can be expensive. While some believe that their expenses will go down, this is not usually the case. Even though commuting to and from work is no longer an issue, the amount of monthly income also goes down. You’re still going to pay the same amount during retirement as you previously did for your utilities, food, auto insurance, mortgage payment, and other monthly expenses.

The trend for longer life expectancy increases the chance that you’ll live longer on less than what you really need to get by. Filing at age 62 when your full retirement can reduce a benefit amount of $1,500 down to $1,050. This is a significant reduction in monthly income that in many cases, can be avoided. If you live to the age of 90 and you retire at the age of 67 versus retiring at age 62, over the course of your lifetime during retirement, you could end up bringing in up to $61,000 more than if you had taken the early retirement option.

What could you do with the extra cash?

Before you make your final decision about the best age to retire, it’s advised that you take into consideration the potential that you will live for many years beyond your life expectancy. Think about how much your monthly expenses are going to be during retirement. There are certain circumstances that make taking early retirement the only and in some cases the best option. If you’re in poor health and your outlook for a longer life is bleak, taking early retirement may be precisely what you need to do. Everyone’s life circumstance is different, but it pays to examine your current and likely future situation before making this very important decision.

Final thoughts

Filing for Social Security benefits is a life event that many seniors who have spent their entire lives working look forward to. It’s not a decision that should be taken lightly. Filing early, at the age of 62 can mean the loss of tens of thousands of dollars in retirement income over your lifespan if the prospects of living a long life are good. It’s nice to have the option of filing early and for some people it makes good sense while for others, waiting until full retirement age is a better option. Consider your unique personal situation and take the time to investigate all aspects of your retirement years before you make your final decision. It’s a big step and it signals a major life change and the choice that you make today could impact your financial future years down the road.

Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Careers CEOs Companies Education Entertainment Legal Politics Science Sports Technology
driving apps
The 10 Best Driving Apps for iPhone and Android
insurance discussion
20 Things You Didn’t Know about Coalition
Rowan Trollope
10 Things You Didn’t Know about Rowan Trollope
Collectibles Credit Cards Investing Real Estate Stocks
American Express
AMEX Gold vs. Chase Sapphire Preferred: Who Wins?
credit card
What is a Credit Card Hold and How Do You Avoid One?
stock market
Is Zentalis Pharmaceuticals (ZNTL) a Solid Long Term Investment?
Aviation Boats Food & Drink Hotels Restaurants Yachts
Visit the Yacht Club Community Park
The 20 Best Things to do in Cape Coral, FL
Cognac
Cognac vs. Brandy: What are the Differences?
262-Foot Superyacht “Artefact”
A Closer Look at the 262-Foot Superyacht “Artefact”
BMW Bugatti Cadillac Ferrari Lamborghini Mercedes Porsche Rolls Royce
1,825 HP Bugatti Bolide
A Closer Look at the 1,825 HP Bugatti Bolide
Subaru Impreza WRX WRX STI
The 20 Best Turner-Friendly Vehicles of All Time
2022 Hummer Ev
A Closer Look at The 2022 GMC Hummer EV
BMW Motorcycles Buell Ducati Harley Davidson Honda Motorcycles Husqvarna Kawasaki KTM Triumph Motorcycles Yamaha
Honda CB600F Hornet
Remembering the Honda CB600F Hornet
2022 Triumph Tiger Sport 660
A Closer Look at The 2022 Triumph Tiger Sport 660
2022 Zero FXE Electric Motorcycle
A Closer Look at the 2022 Zero FXE Electric Motorcycle
Electronics Fashion Health Home Jewelry Pens Sneakers Watches
watch cleaning
A Simple Guide on How to Clean Watches Properly
Grandfather Tuna
Ranking the Five Best Seiko Tuna Watch Models
Driving Gloves
The 10 Best Pairs of Driving Gloves Money Can Buy
Michael Jai White
How Michael Jai White Achieved a Net Worth of $3.5 Million
Vice President Mike Pence
How Mike Pence Achieved a Net Worth of $1 Million
Andrew Schulz and Nessa
How Andrew Schulz Achieved a Net Worth of $3 Million
Wolf Blitzer
How Wolf Blitzer Achieved a Net Worth of $20 Million