3 great reasons to take Social Security benefits at 62

For many of us, Social Security will provide much, if not most, of our retirement income. It’s critical enough to understand how it works, then, so you can make smart decisions about it.

For starters, know that most people can start collecting benefits from 62 to 70, although each of us has a “full retirement age” somewhere in between. Your checks will be smaller if you start cashing before you reach full retirement age, and will be larger if you delay.

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Here are three reasons to consider earning your benefits early, at age 62 or close.

Reason No. 1: Your life may be shorter than average

It may seem like a delay until age 70 is the best option as it will maximize your checks. Remember, though, that while checks will be larger, you will receive far fewer than if you had started cashing early. In fact, the system is designed so that those who live average-length lives reap roughly the same total benefits, no matter when they start charging.

However, few of us know how long we will live. If your family is full of people who have lived to be 90 years old, and you are in pink health yourself, you have a good chance of living a long life, and it may make particular sense to delay collection if possible.

But if you don’t, start earning early means you’ll get Social Security income sooner, and that can help you retire early, or just enjoy life more, with less financial stress.

Reason No. 2: you need the money

Speaking of financial stress, there is a good chance that you simply need your Social Security income sooner than expected. It is smart to have a retirement plan, knowing how much you will save and accumulate and when you will retire, but life does not always go according to plan. It’s not uncommon to lose a job ahead of schedule, face an expensive health problem, or have to care for a loved one instead of work. If, after you turn 62, you find you have trouble surviving, consider starting to collect your Social Security benefits.

However, don’t do this without considering all other options, and you may also want to consult a financial advisor. For example, if you are married, you should coordinate a plan with your spouse. If you have been earning much more than your partner for a long time, you may want they to start collecting benefits early, while delaying your checks to maximize them. That can be a good strategic move because when one of you dies, the survivor will reap a set of benefits, whichever spouse is older.

It is best to avoid getting financially trapped later in life, so try to save aggressively and invest effectively from now on, no matter how far you are from retirement. The following table shows how much you can accumulate if you are determined and diligent:

Data source: calculations by author.

Reason No. 3: you don’t need the money

If you are financially independent or have accumulated enough money for a comfortable retirement, it may not be too fair when you start collecting benefits. You could start early to collect more in case your life ends up being shorter than average. Or you could start early to have extra money in the early years of your retirement, which could make those years more enjoyable, perhaps with lengthy and expensive travel.

Collecting early can also be part of a larger strategy. If, for example, you have annuity or pension income starting at age 65, receiving Social Security income starting at age 62 can help you survive until annuity income begins, perhaps helping you retire earlier.

The more you know about Social Security, the better decisions you can make about it and the more money you can raise from the program.