Reasons to Apply for Social Security at Age 62 Early Filling Social Security benefits early as you can it is more important because at age of 62 as taking as younger than your designated full retirement age ,This article discuss the Smart reasons to Apply for Social Security at Age 62 Early.
Reasons to Apply for Social Security at Age 62 Early
To enable early retirement
Based on what we know about the average Social Security recipient, the chances are good that you won’t be able to retire unless you have Social Security checks to help supplement your savings and other income sources.
To enjoy your money when you’re young
If you’re hoping to use your Social Security checks to fund travel or other hobbies that you need to be in good health for, then you might prefer to start your checks at 62 rather than waiting until later in life.
Most people tend to develop more aches, pains, and even serious health issues the further they get into retirement. This can mean that delaying your claim for benefits means your checks start too late for you to enjoy them much.
To enable a higher-earning spouse to delay a claim for benefits
If you are married and you and your spouse need some Social Security money to live on, you might decide it makes sense for one of you to claim your benefits at 62. If that’s the case, it often should be the lower-earning spouse who starts checks first.
Health issues
You are eligible to collect your full retirement benefit — 100% of the amount you’re entitled to receive based on lifetime earnings — at full retirement age (FRA). Full retirement age varies based on when you were born. The most recent age group to reach FRA were those born in 1957, as they turned 66 and 6 months in 2023. The FRA increases gradually to age 67 for people born between 1957 and 1960. FRA is 67 for all people born in 1960 and later.
You no longer want to work
It’s not hard to believe that the average person spends 13 years and two months at work during their lifetime, according to the HuffPost. If you have a physically taxing job, it may seem even longer. A 2023 study by the Economic Policy Institute revealed that one in two workers over age 50 work in unhealthy or hazardous conditions, or have jobs that are physically draining. If this is the case, you may no longer be willing or able to work, and instead of remaining on the job, may choose to draw Social Security early.
You need cash now
With the rising cost of living, you may decide to claim your Social Security benefits early. In the Great Recession of 2008 to 2009, nearly 36% of eligible men and 39% of eligible women started claiming benefits at age 62 for one simple reason — to pay the bills. In 2021, that number fell to 30% of eligible seniors, but it’s high enough to indicate that many retirees depend heavily on Social Security to make ends meet.
You need to cover expenses and get out of debt
It’s possible your current living expenses may surpass your Social Security benefit amount, so you decide to take your benefits early because you can’t wait for a larger payout later. Or, you’re drowning in debt, and taking benefits now will help. You may also feel you could do better by collecting your benefits early and investing that money. While that may appear logical, your investment must beat the 6% to 8% guaranteed return on your money that Social Security provides if you retire at full retirement age.
You fear benefits will dry up
The world is changing, and you may simply fear that Social Security will run out of money around when you reach full retirement age. This may be true even if you understand you’ll receive a larger benefit if you delay claiming social security. Fear can be a driver in decisions, and if this is you, claiming benefits early may be practical.
