Should you start collecting social security at 62?
Deciding when to start collecting social security is a significant financial decision that can impact your retirement income for the rest of your life. The age of 62 is a common consideration for many individuals, as it is the earliest age at which you can begin receiving benefits. However, it is crucial to weigh the pros and cons before making this decision.
One of the primary advantages of starting to collect social security at 62 is the financial security it provides. Early retirement can be appealing for those who want to enjoy their golden years sooner or have health concerns that may limit their ability to work longer. Additionally, collecting benefits at 62 means you will receive a smaller monthly payment compared to waiting until the full retirement age (FRA), which is currently 66 to 67, depending on your birth year.
On the other hand, delaying your social security benefits can result in a higher monthly payment. If you wait until your FRA or beyond, your benefits will increase by a certain percentage each year, known as delayed retirement credits. This can significantly boost your retirement income, especially if you plan to live a long life. Moreover, delaying benefits can also protect your spouse’s benefits, as they may be entitled to a higher survivor benefit if you pass away.
When considering whether to start collecting social security at 62, it is essential to evaluate your financial situation and retirement goals. Ask yourself the following questions:
- Do I have enough savings and investments to support myself until I reach my FRA or a later age?
- Am I in good health, and how long do I expect to live?
- Do I have any other sources of income, such as a pension or part-time work?
- What are my long-term financial goals, and how will social security fit into my overall retirement plan?
Seeking advice from a financial advisor or retirement planner can also be beneficial. They can help you analyze your specific situation and provide personalized recommendations based on your financial needs and goals.
In conclusion, the decision of whether to start collecting social security at 62 is a complex one that requires careful consideration. While it can provide immediate financial security, delaying benefits may offer a higher monthly payment and potentially protect your spouse’s benefits. It is essential to evaluate your financial situation, health, and retirement goals before making this significant decision.
