3 Great Reasons to Receive Social Security Benefits at Age 62 | personal finance

(Maurie Backman)

When it comes to applying for Social Security, you have your share of options. If you wait until full retirement age (FRA) to enroll, which is 66, 67, or somewhere in between, you’ll get the full monthly benefit you’re entitled to based on your wage history. If you delay filing beyond the FRA, your monthly benefit will increase, for life.

But there is also the option of signing up for benefits before the FRA. In fact, the earliest age you can claim benefits is 62, and it’s a very popular choice among seniors. Here are some good reasons to enroll yourself in Social Security at age 62.

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1. You have to

You may not have plans to leave your job at age 62. But what if your business is forced to downsize and you end up on the cutting board?

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If you get laid off, you may have a hard time finding a replacement job (because, let’s face it, companies aren’t always that eager to hire older workers). And if that’s the case, and you need money to pay your bills, then applying for Social Security right away may be your only option.

2. want

Some people end up approaching retirement with little or no money in a personal savings plan. But what if you end up on the opposite ship?

If you’re sitting on a huge nest egg, then you may feel perfectly comfortable applying for Social Security at age 62, even if it means cutting your benefits in the process. After all, if your own savings can support you and cover your essential bills, you may decide to take the money you receive in benefits and use it to travel or indulge in more expensive hobbies while your health is well enough to cooperate.

3. Your body is telling you to do it

Social Security is designed to pay you the same total amount of money over your lifetime, regardless of when you first apply for benefits. Think about it: If you claim Social Security at age 62, you’ll reduce your benefits but get more years of payments. If you delay filing, you’ll get more money each month but fewer individual payments.

Things should break even if you live an average life. But if your health is poor and therefore you suspect you won’t, then your best option may be to claim Social Security as soon as possible. If you do, you could actually get more money out of the program as a whole.

What is the correct call?

There are many scenarios where it is worthwhile to claim Social Security in FRA or beyond. If your health is excellent and you believe you will live longer than the average older adult, then a later age of presentation will generally lead to a higher total lifetime benefit. And if you’re retiring with virtually no money in your IRA or 401(k), you may need a more generous monthly benefit to compensate.

But still, there are many situations where it makes sense to apply for benefits as soon as possible. And if any of the above apply to you, you might want to consider claiming Social Security at age 62 on the nose.

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