5 Good Reasons You SHOULD CLAIM Social Security at 62!

Deciding when to claim Social Security is one of the biggest retirement decisions you’ll make. Most people are told to wait as long as possible before claiming Social Security. In fact, delaying benefits until age 70 is often considered the default retirement strategy. But what if that’s actually the wrong move? For millions of retirees, especially married couples, waiting isn’t always the best option.

Why Many Retirees Wait Until Age 70

The longer you wait to claim Social Security, the larger your monthly benefit becomes. That’s why many retirees are told to delay benefits for as long as possible. While waiting can lead to a bigger monthly check, it isn’t always the best choice. Life expectancy, survivor benefits, income needs, and personal retirement goals can all affect the outcome.

Here are five situations where claiming Social Security at age 62 may make sense.

Reason #1: Your Break-Even Age May Favor Claiming Early

One thing to think about when claiming Social Security is your break-even age. A simple way to think about it is like two trains leaving a station at different times. One train leaves early but travels more slowly. The other leaves later but moves much faster. Eventually, the faster train catches up.

Social Security works the same way. Let’s say you claim benefits at age 62 and receive $2,500 per month, or $30,000 per year. By the time you reach age 70, you will have already collected about $240,000 in benefits. Now imagine waiting until age 70. Your annual benefit might increase to roughly $55,000. That’s a much larger payment, but it still has to catch up to the person who already received eight years of benefits. 

When does the higher benefit finally make up for that head start? If the break-even point occurs around age 80 and both strategies yield roughly the same total benefits by then, waiting may offer little advantage. In that scenario, some retirees would prefer to access their money in their 60s and early 70s rather than wait for larger payments later. Of course, the break-even analysis is only part of the story. For married couples in particular, survivor benefits can completely change the math.

Tip: How to Estimate Your Break-Even Age

Your break-even age is the point where the higher benefit from delaying Social Security catches up to the total payments you would have received by claiming earlier. If you don’t expect to live far beyond that age, claiming at 62 may be worth considering.

Reason #2: Survivor Benefits Can Sometimes Support Claiming Early

If you’re married, you also need to think about survivor benefits. In some cases, survivor benefits are actually a reason to delay claiming Social Security. For example, let’s say you claim benefits at age 62 and lock in a permanently reduced payment. If you pass away first and your spouse lives for another 20 or 30 years, they may receive that lower benefit for the rest of their life.

However, survivor benefits can also point in the opposite direction. Consider a couple with a significant age gap. Let’s say one spouse is 75 years old while the other is 62 years old. The younger spouse spent their career earning a high income and qualifies for a large Social Security benefit.

At first glance, waiting until age 70 may seem like the obvious choice. After all, the monthly payment will be much larger. But what happens if the older spouse passes away first? When one spouse dies, the surviving spouse generally receives the higher of the two Social Security benefits.

If the younger spouse is eventually going to receive the higher benefit anyway, waiting until age 70 could mean giving up eight years of payments between ages 62 and 70. In that situation, the math can become much clearer. Rather than waiting for a larger benefit later, claiming at age 62 may allow the younger spouse to collect years of income that would otherwise be left on the table.

Reason #3: You Need Cash for a Few Years

Not every Social Security decision is about maximizing your lifetime benefit. Sometimes, you need income for a few years while you wait for another source of money to become available. You may be waiting for a pension to begin, expecting an inheritance, or preparing to sell a business. In these situations, claiming Social Security at age 62 can help bridge the gap.

The benefit provides income today, which may allow you to avoid tapping your investments while the market is down or before another income stream starts. Instead of withdrawing money from your portfolio, you can use your Social Security benefit to help cover expenses during the transition. However, there’s an important factor to consider if you’re still working. If you claim Social Security before reaching full retirement age, your benefits may be reduced if your earnings exceed the annual limit. In 2026, the earnings limit is $24,480. For every $2 you earn above that threshold, the Social Security Administration withholds $1 in benefits.

Claiming at 62 may make sense if you’re no longer working or earning below the limit. But if you’re still earning a substantial income, a significant portion of your benefits could be withheld while you’re working. That’s why Social Security often works best as a temporary bridge when you’re between income sources, rather than as an additional income stream on top of a full-time salary.

SEE ALSO: 6 Social Security Mistakes You Should AVOID. Here’s How!

Reason #4: You Want to Invest the Money Sooner

Some retirees believe it makes more sense to claim Social Security at age 62 and invest the money themselves. For many people, this approach is appealing because they’ve spent decades paying into the Social Security system. In some situations, that strategy can make sense.

However, it’s important to understand how much your Social Security benefit grows by waiting. If you claim Social Security at age 62, you’ll generally receive about 70% of your Primary Insurance Amount, which is the benefit you’re entitled to at full retirement age. If you wait until age 70, you’ll receive approximately 124% of your Primary Insurance Amount. When you compare those numbers, waiting until age 70 produces roughly an 80% increase in benefits. That’s a significant hurdle for an investment portfolio to overcome.

According to ThinkAdvisor, for a couple with at least one person likely to live to age 90, your investment portfolio would need to return about 10% per year to outperform delaying Social Security. Once spousal and survivor benefits are factored in, and once you factor in taxes on top of that, that’s a high hurdle, and markets aren’t always that kind in the short run.

There’s also the reality that markets don’t move in a straight line. A few disappointing years between ages 62 and 70 could significantly affect your results and change the outcome of the comparison. That’s why the decision isn’t as simple as taking the money early and investing it. While that strategy can work in some situations, you should carefully compare potential investment returns with the guaranteed increase from delaying Social Security.

Reason #5: Your Personal Goals Matter as Much as the Numbers

While Social Security decisions often involve careful calculations, the choice isn’t always purely mathematical. For some retirees, claiming benefits at age 62 provides peace of mind. After spending decades paying into the system, maybe you feel more comfortable receiving that income now rather than waiting years to collect it.

Others view retirement spending differently. Many retirees spend more during their early retirement years than they do later in life. Travel, hobbies, and other experiences often happen during the first decade of retirement. By the time they reach their 80s, their lifestyle and spending habits may naturally slow down. In that situation, receiving more income during active retirement years may be more appealing than waiting until age 70 for a larger monthly payment.

Of course, the opposite can also be true. Some retirees prefer knowing they’ll have a larger guaranteed income stream later in retirement. Watching their future benefit grow provides a sense of security and confidence, especially if they’re concerned about outliving their savings.

This is similar to the decision to pay off a mortgage early. From a purely mathematical standpoint, paying off a low-interest mortgage may not always be the optimal financial move. However, many people still choose to do it because it helps them feel more secure entering retirement. The same principle can apply to Social Security. For some retirees, claiming at 62 feels right because it provides income they can use today. For others, waiting offers greater peace of mind because they know they’ll have a larger guaranteed benefit in the future.

SEE ALSO: Sell These 5 Things BEFORE You Retire (For Peace Of Mind)

When to Claim Social Security Is a Personal Decision

There is no one-size-fits-all answer for when to claim Social Security. While waiting until age 70 can increase your benefit, claiming at 62 may make sense depending on your life expectancy, income needs, survivor benefits, and retirement goals.

Before making a decision, take the time to run the numbers and consider how each strategy fits into your overall retirement plan. If you’re unsure which approach is right for you, schedule a conversation with Paces Ferry Wealth Advisors to discuss your options and create a Social Security claiming strategy tailored to your goals.

Paces Ferry Wealth Advisors, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.