Is it smart to draw Social Security at 62?

Asked by: May Lindgren  |  Last update: March 17, 2024
Score: 4.6/5 (50 votes)

There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit will be reduced. Each person's situation is different.

Is taking Social Security at 62 a good idea?

The earliest you can start taking Social Security retirement benefits is 62. However, the Social Security Administration reduces benefits by 30% for people who retire at 62, meaning they receive just 70% of their full retirement benefit each month for life.

What percentage of people draw Social Security at 62?

In the U.S., you can retire as early as 62 and start claiming your Social Security. And as of 2021, according to the Congressional Research Service, about 30% of Social Security applicants were 62.

Why smart people take Social Security at 62?

Assuming your full retirement age is 67, if you file for those retirement benefits at 62, you'll receive around 70% of your full retirement age benefit amount. If you file for disability and are awarded those benefits, the amount that you would receive would be 100% of your full retirement age benefit, even at 62.

Is it a mistake to take Social Security at 62?

The biggest risk of claiming early

The earlier you file for Social Security, the less you'll receive each month. But it could end up being more costly than many people think. By claiming at age 62, your benefit will be reduced by up to 30%.

5 GOOD REASONS to File for Social Security at Age 62

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Do people regret taking Social Security early?

According to a recent paper from the National Bureau of Economic Research, 19% of survey participants said they regretted taking Social Security too soon. Among the other top regrets the retirees had were not having saved enough, not purchasing long-term care insurance, and not working longer.

What is the average Social Security check at age 62?

Based on data from the SSA's Office of the Actuary, nearly 566,000 aged 62 retired-worker beneficiaries were receiving $1,274.87 as of Dec. 2022. Meanwhile, the average Social Security check for the 2.27 million retired workers at age 66 is $1,719.85.

What does Dave Ramsey say about taking Social Security at 62?

He claims that doing so will give you a greater return than you would get by waiting until a later age to apply for Social Security, which means you get a bigger monthly check. “It usually makes sense to take it early if you're going to … invest every bit of it,” Ramsey said in a 2019 podcast that aired on YouTube.

What is the smartest age to collect Social Security?

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

How do I get the $16728 Social Security bonus?

Beneficiaries are currently searching for information on How Do I Receive the $16728 Social Security Bonus? Retirees can't actually receive any kind of “bonus.” Your lifetime earnings are the basis for a calculation that the Social Security Administration (SSA) uses to calculate how much benefits you will receive.

How soon before my 62nd birthday should I apply for Social Security?

You can apply for retirement benefits up to 4 months before you want to start receiving your benefits. Even if you are not ready to retire, you still should sign up for Medicare 3 months before your 65th birthday.

Why do most people retire at 62?

Many senior adults struggle with conditions like heart disease, arthritis, and diabetes. Retiring in your early 60s will allow you to focus more on your health and lower your risk of developing these conditions. Retiring at the early age of 62 is also beneficial to those who already have serious health concerns.

Do a lot of people retire at age 62?

The average age of retirement in the U.S. is 61, according to Gallup. That hasn't changed much over the past two decades. Since 2002, the average retirement age has ranged from 59 to 62. Going back further, the average retirement age was 57 in 1991, 58 in 1992, and 57 again in 1993.

What is the highest Social Security check at age 62?

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822. However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.

What is the 5 year rule for Social Security?

The Social Security disability five-year rule allows people to skip a required waiting period for receiving disability benefits if they had previously received disability benefits, stopped collecting those benefits and then became unable to work again within five years.

At what age is Social Security no longer taxed?

While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

What is the most common age to take Social Security?

Age 66. Unsurprisingly, beginning to collect when you're eligible for full Social Security retirement benefits was the most popular option for both sexes, with 28.4% of men and 26.5% of women beginning at this age in 2022.

Do you pay taxes on Social Security?

About 40% of people who get Social Security must pay federal income taxes on their benefits. This usually happens if you have other substantial income in addition to your benefits.

What is the lowest Social Security benefit at age 62?

  • Social Security's special minimum benefit pays at least $49.40 per month in 2023 and $50.90 in 2024.
  • Social Security's special minimum benefit tops out at $1,033.50 per month in 2023 and $1,066.50 in 2024.
  • You'll receive 100% of the benefit if you file at full retirement age or later.

How do I find out how much money I get if I retire at 62?

You can use Social Security's benefit calculators to: Estimate your retirement benefits based on when you would begin receiving them (from age 62 to 70) Calculate what payments you would receive based on your earning history.

How much Social Security will I get at age 62 if I make 100000?

If your pay at retirement will be $100,000, your benefits will start at $2,026 each month, which equals $24,315 per year. And if your pay at retirement will be $125,000, your monthly benefits at the outset will be $2,407 for $28,889 yearly.

Is it better to take Social Security at 62 or 67?

If you start taking Social Security at age 62, rather than waiting until your full retirement age (FRA), you can expect a 30% reduction in monthly benefits with lesser reductions as you approach FRA. Remember, FRA is no longer age 65: It's 67.

What is a good monthly retirement income?

Based on the 80% principle, you can expect to need about $96,000 in annual income after you retire, which is $8,000 per month.

Is Social Security based on the last 5 years of work?

We: Base Social Security benefits on your lifetime earnings. Adjust or “index” your actual earnings to account for changes in average wages since the year the earnings were received. Calculate your average indexed monthly earnings during the 35 years in which you earned the most.