If you are tempted to start receiving Social Security benefits at an early age, applying for benefits at the age of 62 might seem like a good idea, but to be honest, it’s not always the best move to take.
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The Negative sides of Early Retirement
The three main reasons why applying for Social Security at 62 might not be the smartest decision you’ll make.
Reason 1: Reduced Retirement Checks
If you start receiving your benefits at the age of just 62, your monthly checks will be smaller. We’re here talking about a 30% reduction if your full retirement age is 67. This is a very big change since these checks are meant to protect you for life ahead.
Reason 2: Working While Receiving Benefits? THINK TWICE
If you plan to keep working past the age of 62, you might want to rethink applying for benefits just yet. If you earn above a certain threshold of $22,320 in 2024, you’ll definitely lose $1 of your benefit payment for every $2 you earn. That’s a very low limit.
Reason 3: Maximizing Your Lifetime Income
Earlier studies have shown that waiting until the age of 70 to start receiving benefits will always lead to a bigger payout in the long term. So, if you want to make the most of your Social Security benefits, it’s usually best to wait as long as possible.
Be Mindful And Think Twice
Applying for Social Security benefits at 62 might seem tempting, but it’s not always the best move to be taken. By waiting, you can avoid reduced retirement checks, minimize the impact of working while receiving benefits, and maximize your lifetime income. Take your time, Your future self will thank you for not making the move at an early age.
FAQs
Can I apply for Social Security benefits at 62?
Yes, but think twice before doing so.
What’s the downside of applying at 62?
Smaller monthly checks for life.
What’s the full retirement age?
67 for those born in 1960 or later.
How long should I wait for retirement?
Until 70 for maximum benefits.
What documents do I need?
Proof of age, income, and citizenship.
