Claim Social Security at the Age of 62 Will Reduces Your Benefits. Here’s Why You Should Still Sign Up.

Applying for benefits at the age of 62 may work out rather well for you. There is a considerable probability that Social Security will provide a sizable portion of your retirement income.

Ideally, those benefits will not be your sole source of income throughout your retirement years. However, it is safe to suppose that you will largely rely on them.

This is why seniors are urged to file for Social Security in a planned manner. Once you reach full retirement age or FRA, you are eligible to receive your full monthly benefit based on your specific wage history.

FRA begins to manifest itself at 66, 67, or anywhere in between, depending on your birth year.

However, you do not have to wait until FRA to begin getting benefits. You can begin collecting Social Security benefits as early as age 62.

Your payments will be decreased by one month for each month you file for Social Security before attaining FRA. If you file at age 62, you should expect a decrease of 25% to 30%, depending on your specific FRA.

That’s a significant hit — one that might make retirement finances tight. Despite this effect, there are a few reasons why enrolling in Social Security at the age of 62 may be worthwhile.

You will accrue a greater lifetime benefit if you live a short life.

While applying for Social Security at the age of 62 will result in a reduced monthly income, it will not necessarily result in a reduced lifetime benefit. Indeed, if you die at a very early age, filing at 62 may obtain more money from Social Security.

Without a crystal ball, no one can predict how long they will live. However, if you are approaching retirement and are experiencing health problems, you may want to consider submitting a benefits claim as soon as you are permitted to.

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You’ll have the option of quitting unsatisfactory employment sooner.

Unfortunately, many people find themselves trapped in demanding, stressful employment that has a detrimental effect on their health.

It’s one thing to be in that scenario in your twenties and thirties when you’re still contributing to the labor market and may have the stamina to deal with long hours or difficult working circumstances. However, dealing with it in your 60s is another matter.

If your employment is so unpleasant that it affects your health, your objective should be to quit as soon as possible. And Social Security may enable that to happen. If you begin receiving benefits at age 62, you may be able to transition to lower-paying but more manageable employment.

What are the benefits of collecting Social Security at the age of 62?

If you’re approaching retirement and have limited resources, there is a definite danger of claiming Social Security at 62.

However, if you have a sizable nest fund, it may make sense to enroll as soon as possible – despite the significant reduction in monthly benefits that may result.

If you determine that you are too scared to register for benefits at age 62, a middle-ground approach may be ideal — one that requires you to file at a later age but before FRA.

Signing up at age 65, for example, will result in a reduced payout but not nearly as severe as submitting at age 62. And in this manner, you will still receive your money sooner.