Of all the questions regarding retirement, when to claim Social Security is near the top of the list.
All of us look forward to retiring at some point. But everyone’s journey to that point is different. Because of this, the ages we choose to take it are different as well.
The absolute earliest you can receive Social Security is at age 62. Some people wait until 70, which is a few years past the full retirement age. As you may imagine, there are advantages to each of these options. Which is right for you?
The Perks of Taking Social Security Early
If you’re eager to exit the workforce, early retirement looks good. Taking your benefits the moment they’re available can be very rewarding.
This option is great for those who don’t need to keep working. It’s also helpful for anyone whose health issues make it difficult to continue working.
The main drawback of early retirement is a reduced Social Security benefit. Specifically, you could lose out on about 30 percent of your check. But for those whose savings and investments can cover the cost, age 62 is a fine time to clock out for good.
The Perks of Waiting to Claim Social Security
While the full retirement age is 67, some people wait until they hit 70 to claim their benefits.
What’s the advantage here? There’s a trend among people with longer life expectancies to wait to claim. You’ll enjoy a higher payout, and you’ll be able to really live it up when you finally do retire.
Those who have careers that are enjoyable, high paying, and stable may want to keep working — especially in this economy. Even if you can afford to retire at 62, it may be worth it to wait if you want to stack up some extra money before retirement.