If you’re eager to claim Social Security retirement benefits, you’re probably already aware that 62 is the earliest age you can get your checks.
Unfortunately, many financial experts advise against starting payments at 62 because it reduces your standard benefit and leaves you with far less money each month than you would receive if you waited longer. The proposal to defer can be discouraging if you count the days down until you are eligible for benefits.
But the good news is, you do not necessarily have to listen to this suggestion. In fact, there are three important reasons for this claims on your benefits at age 62 could be the best economic move. Here’s what they are.
1. You do not have to worry about surviving life expectancy
Below Social security rules, claiming benefits early results in a reduced monthly check. For every year you wait, your payment gets bigger up to the age of 70. The reason for this is simple: the goal is to try to offset how much money each retiree receives during their lifetime, regardless of when the benefits are applied for.
Early claimants get multiple checks as they start them earlier, but each check is at a lower amount. On the other hand, those who wait miss out on months or years of payments. But even if they get fewer total checks, each one is for a larger amount.
The system is designed based on average life expectancies, as projected by actuaries. But many people die either faster than expected or live longer. Those who live longer are better off delaying social security requirements. If they do, they get more checks than expected based on life expectancy. With larger checks coming in for longer than expected, they end up not only compensating for the previous payments they missed, but also getting extra money over time.
However, those who pass away at a younger age than expected will end up with more lifetime income from social security if they does not delay their benefit claims. If they had waited, they would not get enough large checks in the future to compensate for the income they gave up.
If you do not want to have to worry about surviving life expectancy but prefer to start getting payments ASAP, it is to claim 62 years.
To claim 62 could potentially open the door to earlier retirement
If you were hoping to retire at a young age and enjoy life, you may need social security checks to make it happen. It is difficult to put together a sufficiently large investment account to fully support yourself without social benefits, especially if you plan to leave the workforce faster than most people do, as you have less time to save.
If your nest egg can not support you by itself, but you are ready to stop working, you may decide that an application for social security of 62 is worth it to supplement your savings and allow you to go retired – even if it means you do. get a smaller dividend for life.
An early claim may release spousal benefits
Finally, if your spouse wants to claim spouse benefits from social security on your work history, you must first start getting your own retirement benefits.
Spouse benefits correspond to up to 50% of the standard benefit for the person whose work record these benefits are based on. If you earned more than your partner, the spousal benefits available could be greater than their retirement benefits would be. And if your partner did not work hard enough to be eligible for Social Security at all, spousal benefits could be the only income they receive from the Social Security Administration.
Now you should consider the reality that social security claims early diminish survivor benefits that your widow would be left with if you died first. However, you may decide that it is worth reducing the available benefit after you leave to make spouse services available ASAP.
You need to consider both the pros and cons of starting Social Security at age 62 to decide what is right for you. But as you can see, there are certainly reasons why beginning services at the youngest available age could potentially be a good choice in the end.
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