3 signs you should absolutely take Social Security at 62

Your Social Security claim age will have a significant impact on your monthly benefit amount. Filing early could mean you get hundreds of dollars less per month, so it’s a decision to take seriously.

Unfortunately, however, there is no clear answer as to when everyone should start claiming. Some are better off filing sooner, while others could seriously benefit from waiting a few years. The right choice for you will depend on your unique situation.

That said, choosing a storage age is simpler than you might think. If you’ve been thinking about taking Social Security as early as possible at age 62, there are three clear signs it might be the best decision.

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1. You have a robust pension fund

Retiring at any age is expensive, but retiring in your early 60s is even more financially challenging. With seniors living longer lives and costs continuing to rise, you may need more than $1 million to retire comfortably.

Even with Social Security, you’ll likely need a solid retirement fund to make ends meet. The average retired worker collects just over $1,900 per month in benefits starting in July 2024, and claiming at age 62 will reduce your payments by up to 30% compared to what you would receive at full retirement age.

Exactly how much you need in savings will depend on many factors, such as the cost of living in your area and your expected life expectancy. But a rule of thumb is to multiply your annual costs by 25. So if you expect to withdraw, say, $40,000 a year from your retirement fund, you’ll need about $1 million in total savings.

Again, this is just a rough estimate and everyone’s savings needs will differ. But the stronger your retirement fund, the less you’ll have to rely on Social Security — and the sooner you can start claiming.

2. You were forced into early retirement

Unfortunately, not everyone has the luxury of choosing when to retire. While claiming early can be risky if you don’t have a lot of savings, it can sometimes be the best move if you’re forced to retire earlier than expected.

You don’t necessarily have to start receiving benefits as soon as you retire, but it can help your savings last longer. If you were to retire at age 62 but delay benefits until, say, age 65, you’d collect larger checks each month. But you’d also have to rely entirely on your savings or other sources of income for three years, which risks depleting your retirement fund too quickly.

It’s especially important to keep your savings early in retirement because the longer your money sits in your 401(k) or IRA, the more it will grow. If you can rely more on Social Security, you can leave more savings untouched in your retirement account — helping them last longer.

3. Your health has taken a turn for the worse

In theory, you should collect the same amount from Social Security in total, regardless of the age you start claiming. You’ll either collect smaller (but more) checks or fewer, larger payments.

However, if you live a shorter than average lifespan, you may get more by claiming early. Each payment will still be lower, but your lifetime benefit may be higher than if you deferred Social Security. Also, filing early can give you more time to enjoy your money while you’re younger and healthier.

Although no one can predict exactly how long you will live, if your health has deteriorated or certain illnesses run in your family, claiming as early as possible could help you collect as much of your Social Security benefits as possible.

Your claim age is a highly personal decision and there is no right time to file. But taking Social Security at age 62 can be a smart choice for many people, and by weighing all your options, you can make the best decision for your financial future.