Social Security is available at 62, but claiming early costs most retirees hundreds of thousands in lifetime income. Waiting until age 70 increases monthly benefits by roughly 76% compared to taking them at 62.
The average American who claims before 70 forfeits $182,370 in potential benefits. Yet over 90% file early-often due to misinformation or financial stress.
You need the money If you’re 62 with no income, taking Social Security may be necessary. But experts advise tapping retirement savings first if possible. Economist Laurence Kotlikoff urges people to “beg, borrow and steal” rather than claim at 62.
You don’t expect to live long Break-even between claiming at 62 vs. 70 occurs around age 80. Most 62-year-olds will live into their 80s-life expectancy rises with age. Only those with serious health issues should consider early filing.
Social Security is running out of money A projected 2032 shortfall could trigger a 28% benefit cut-unless Congress acts. But analysts say cuts would likely target younger workers, not current retirees. “Political suicide” makes near-term reductions unlikely.
You want to invest early checks Investing Social Security payments from age 62 could pay off-if returns hit 5% annually and you die before 90. But markets are volatile. Social Security offers unmatched security: inflation-adjusted, government-guaranteed income for life.