Pros and cons of collecting social security at age 62
- Taking Social Security before you fully retire? Pros and cons
- Claim Social Security Early or Wait? Advice from the Pros
- When to Claim Social Security Benefits
Taking Social Security before you fully retire? Pros and cons
Social Security Benefits: Is Waiting Just Plain Wrong?and
Anyone can make the decision to retire at almost any age. It all depends on the amount of money that you have saved up through your employment, investments, and other ventures to support the way of life that you want. That makes it the most popular time to retire if there is enough money available. There are times when retiring at age 62 is not what you want to do, but it happens because you are sometimes asked to take this step. If you find yourself in this situation, you will face many of the same pros and cons of retirement that everyone else does when they step away from the labor force early.
There's no one-size-fits-all approach for deciding when to start claiming your Social Security benefits. You can claim as early as age 62, wait until you turn 70, or claim at any point in between. There are certain advantages and disadvantages to claiming your Social Security benefits at every age, depending on your personal circumstances. Being strategic about this decision will impact your entire retirement, and it will maximize your benefits if you do it right. Here are all the pros and cons you need to be aware of in deciding when to start claiming your benefits.
By contributors to Kiplinger. Getty Images. Few retirement conundrums are more confounding than this question: When should I claim Social Security benefits? The credentialed financial advisers whose columns appear on our Wealth Creation Channel have plenty of insights to share, from common rules of thumb to specific scenarios from their own clients that could be enlightening to others struggling with this all-important decision. So, if your family history shows a trend of health and longevity, by all means, delay those benefits and subsidize your early retirement years with money from your other assets. On the flip side, if you are in poor health and your body is worn down from your career, or maybe the average life expectancy in your family is just 75, then taking Social Security early could be the right option for you.
When is the right time to retire? Here are some of the pluses and minuses of quitting your job at different ages. Retiring before the traditional age of 65—the U. Census Bureau 64 for men and 62 for women, according to a report by the Center for Retirement Research —can be invigorating. Relatively few people have the financial resources to support an extended retirement. The benefit for your spouse takes a hit as well.
Claim Social Security Early or Wait? Advice from the Pros
3 Stupid Reasons to File for SS at 62
When to Claim Social Security Benefits
Many people plan to work at least part-time in retirement because they want the income, enjoy what they do, hope to keep active or need a sense of purpose — or some combination of those reasons. But working in retirement can come with some unexpected costs and hazards. That money would be added back into your checks over time, starting when you reach full retirement age. But in the meantime, you will have locked in a permanently smaller basic benefit. Delaying could help in another way, as well. Social Security bases your benefit on your 35 highest-earning years. If the amount you earn exceeds an amount you made previously, that could boost your benefit somewhat.
The earliest age you can claim Social Security benefits is 62 -- and 62 is also the most popular age to claim benefits, according to the Center for Retirement Research. If you're thinking of starting your benefits ASAP once you become eligible, you should carefully consider the pros and cons of this claiming strategy before you make your final choice. There are plenty of advantages to taking the money as soon as you hit the age of Some of them include:. There's also an argument to be made that you're better off claiming Social Security benefits ASAP because the future of the program is uncertain. Still, if you're eligible and you worry about the long-term viability of the program, you may want to get the money while the going's good.
After working hard for decades, taking Social Security at age 62 may seem like a good idea, but for a whole lot of people, it is not the best financial decision you can make. The Huffington Post article linked below states, "About half of all Americans do file at 62—the first year of eligibility for benefits. But for most people, it's a costly mistake that will mean forgoing thousands of dollars in lifetime benefits—in some cases, hundreds of thousands. This advice and logic were as bad as it got. The reason to wait is that by doing so, you are effectively buying more longevity insurance—more insurance against living longer than expected. Maximizing your Social Security benefits will require some good planning and decision making. The most important decision you'll make is when to enroll.
What are the pros and cons of taking Social Security at 62? These articles cover everything you need to know about when to take your benefits.
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