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3 major reasons for taking Social Security benefits at 62 years

Deciding when to start collecting your Social Security benefits is a bigger decision than you might think, because your checks will be smaller if you start early and they will be larger if you delay it.

It may seem like waiting to claim benefits for 70 years is smart – and that's for many people – but there are many good reasons to start collecting early. Here are three of them.

  Two illuminated birthday candles are displayed - one is the number 6 and the other a 2, which spell the number 62.

Image source: Getty Images.

No. 1
: You must

You may have your plan completely ready – maybe working to the age of 65 or 70. It's great, but things don't always work out as planned. The 2016 retirement survey found that 46% of retirees left the workforce earlier than planned, with 55% citing health problems or disability as a reason, and 24% citing job changes such as workforce reductions or closures. Many leave early because they have to . And in such situations, income from social security is often welcome, if not critical.

What can you expect to get? Well, the average monthly check for retirees was recently $ 1,472, or about $ 17,600 annually. However, those who earned more than average during their working years will receive more than that: The maximum benefit for those retiring this year is $ 2,861, or about $ 34,300 annually. However, if you start collecting your benefits early, you will receive reduced benefits – they can be as much as 30% less if your full retirement age is 67 and you start accumulating at 62. (The earliest age you can start collecting is 62 years , and the last age is 70 years.)

To find out more exactly what you can expect to receive on retirement, go to the Social Security Administration (SSA) website and set up a Social Security account. If you do, you can see the latest estimate of any benefits, based on SSA's summary of your earnings. While you're there, it's wise to look into that record and make sure it's accurate – because if it isn't, your benefit checks could end up with less than they should be. (Creating an account can even prevent identity theft and associated headaches, because you might do it before a scammer does it for you, with a view to gathering your benefits.)

No. 2: Delaying may not be worth it

Even if you start collecting benefits early to shrink them, delay can make them bigger – by about 8% for each year beyond the full retirement age you delay. Delay from 67 to 70 and you can make your checks 24% bigger. What's not to like about it? Understand that the system is designed to be a wash: The Social Security Administration has explained that "If you live up to the average life expectancy of someone your age, you will receive about the same amount in lifetime benefits regardless of whether you choose to start receiving benefits in age 62, full retirement age, 70 years or any age in between. "After all, those who get less checks are likely to get far more of them than those waiting for bigger checks.

Waiting for 70 years if you can is well worth it if you end up living a very long life. Few of us have a clear idea of ​​how long we will live, but if you are not in good health, or have many relatives who passed away in their 70s or earlier, it may be wise to start collecting at 62 years. (Remember to think through any coordinating strategies with your spouse, although it can sometimes be effective to use a strategy such as one of you starting early while the other delaying.)

No. 3: You may be able to retire early

One last good reason to start collecting social security at 62 is that it can help you retire early. After all, you only live once, and if you don't love your job and you can manage to retire early, why not? Retiring early can give you the best chance of getting the most out of retirement; Young retirees can generally enjoy their money, be healthier and more able to travel, enjoy recreation and so on.

Be sure that you can swing an early retirement. Read how much money you need and find out how to collect it. Even if you haven't been enough to retire right now, there is a good chance that if you become more aggressive with saving and you invest your money effectively, you can get the pension done sooner.

Here's how much you can accumulate, depending on how far from retirement you are, if you have an average annual growth rate of 8%:

Growth of 8% for

$ 10,000 invested annually

$ 15,000 invested annually

$ 20,000 invested annually [19659020] 5 years

$ 63,359

$ 95,039

$ 126 719

10 years

$ 156,455

$ 234,682

$ 312,910

15 years

$ 293,243

$ 439,865 $ 1965 19659024] 20 years

$ 494 229

$ 741 344

$ 988,458

25 years

$ 789,544 [19659020] $ 1.2 million

$ 1.6 million

30 years

$ 1.2 million

$ 1.8 million

$ 2.4 million

Social security income is crucial to the vast majority of retirees – including, probably, you. So take some time to learn more about it so that you are equipped to make smart decisions that can strengthen your future financial health.

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