Claiming Social Security at age 62 is a popular option among retirees. It’s the earliest age you can start receiving benefits, and it gives you the maximum number of monthly checks over time. However, there’s a trade-off: claiming at 62 reduces your benefit amount by up to 30%, as the government applies a penalty for every month you take benefits before your full retirement age (FRA), which ranges between 66 and 67 for most workers today.

Still, claiming early isn’t always a bad decision. There are three specific situations where starting benefits at 62 might be the right move for you.

1. You Can’t Afford to Delay Benefits

For those relying solely on Social Security, delaying benefits may not be financially feasible. Waiting past 62 to claim benefits increases your monthly checks. For every year you delay, your benefits grow until they reach their maximum at age 70, which could give you 32% more per check than if you claimed at your FRA.

But not everyone has the financial means to wait. If you don’t have substantial savings or a stable source of income, delaying benefits might not be practical. Claiming early could provide the financial support you need now, even if it means receiving smaller checks in the future.

It’s important to prioritize your current financial security over the possibility of larger checks later. Struggling with debt or living without enough income could lead to greater stress and challenges, making an early claim the better option for maintaining stability.

2. You Have a Short Life Expectancy

The decision to delay benefits often depends on your life expectancy. If you expect to live into your mid-80s or beyond, waiting to claim Social Security usually results in a higher lifetime benefit. However, for individuals with shorter life expectancies, claiming early can be the better choice.

If you have a terminal illness, a history of poor health, or family health conditions that suggest a shorter lifespan, starting benefits early allows you to maximize the number of checks you receive during your lifetime.

That said, consider the impact on your dependents. Claiming Social Security early reduces the survivors’ benefits your family may be eligible for after you pass away. If supporting your loved ones financially is a priority, you may need to rethink your strategy.

3. You’re the Lower-Earning Spouse

For couples, Social Security planning can be a collaborative strategy. One effective approach is for the lower-earning spouse to claim benefits at 62. This allows the couple to receive some income early while the higher-earning spouse delays their benefits to maximize the household’s overall Social Security income.

Here’s how it works:

• The lower earner starts collecting their retired-worker benefit at 62.
• When the higher earner begins claiming Social Security, the lower earner can switch to a spousal benefit if it’s higher than what they were already receiving. A spousal benefit can be worth up to 50% of the higher earner’s FRA benefit.

This strategy is especially useful for couples with a significant income disparity. However, if both partners have earned similar amounts, they might be better off choosing their claiming ages based on their individual life expectancies and financial needs

Planning Ahead

Even if you’re years away from retirement, it’s important to start thinking about your Social Security claiming strategy. Consider your financial situation, life expectancy, and how Social Security fits into your overall retirement plan.

You don’t need to lock in your decision today, but having a tentative plan can help you make adjustments as your circumstances change.

Final Thoughts

Claiming Social Security at 62 has its pros and cons, but it can be the right decision in specific situations. If you can’t afford to delay benefits, have a shorter life expectancy, or are the lower-earning spouse in a couple, claiming early may provide the financial support you need.

As with any major financial decision, it’s essential to weigh your options carefully. Evaluate your current and future needs, consult with a financial advisor if necessary, and make a choice that aligns with your goals.

Whether you claim at 62, at your FRA, or later, the key is to ensure that your decision supports your overall financial stability and peace of mind.

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