Most financial experts advise waiting to claim Social Security retirement benefits at least until full retirement age, which is now 67, or even as late as age 70. However, for some individuals, claiming at 62 may make sense, depending on their health, longevity expectations, marital and parental status, and economic needs.
Factors to Consider
Claiming Social Security benefits at 62 can result in a permanently lower benefit, 30% lower than what you’d receive if you wait until 67. On the other hand, waiting until age 70 can increase your benefit by 24%. For example, if your initial monthly benefit at 67 would be $2,000, it would be reduced to $1,400 if you claim at 62, or increased to $2,480 at 70.
Some people may consider claiming early due to concerns about the Social Security program’s revenue shortfall in 2032. However, experts warn that trying to game out potential changes by claiming early means doing a lot of guesswork and may hurt yourself against other types of uncertainty, such as living longer than expected.
Strategizing with Spouses and Dependents
Married couples may want to strategize the best time for each spouse to claim their own retirement benefits to maximize what they can get as a family. Additionally, if you have a spouse or dependent children who would qualify for survivor benefits when you die, they are likely to get less after you’re gone if you claim at 62 than if you wait until your full retirement age.
To make an informed decision, it’s essential to estimate your breakeven year, which is when what you collect by claiming at 62 will be roughly the same as if you start claiming at 67 (or 70). You can sign up for an online Social Security account at ssa.gov to get the latest estimates of your benefits at different ages.
Given the complexity of Social Security rules, it may pay to consult with an accredited financial adviser who has training in how the program works. This could include a certified financial planner who is also a Retired Income Certified Professional (RICP) or Registered Social Security Analyst (RSSA).
Original reporting: El Paso News (HLL/CB) — read the source article.
