can you draw social security at 62

Key takeaways

If yous claim Social Security at age 62, rather than look until your full retirement age (FRA), you tin expect upward to a 30% reduction in monthly benefits.
For every year you filibuster claiming Social Security past your FRA up to historic period lxx, yous get an viii% increase in your benefit. And then, if you can afford it, waiting could be the better selection.
Health status, longevity, and retirement lifestyle are 3 variables that tin play a role in your decision when to claim your Social Security benefits.

When it comes to Social Security, it can be tempting to take the money and run every bit shortly as you're eligible—typically at age 62. After all, you've likely been paying into the system for all of your working life, and you're ready to receive your benefits. Plus, guaranteed monthly income is nice to have.

Health condition, longevity, and retirement lifestyle are 3 key factors that can play a role in your conclusion when to claim your Social Security benefits. You may not be able to predict your future health condition, given the uncertainties that many people are dealing with during the COVID pandemic, but y'all can rely on the simple fact that if you claim early versus afterwards, you lot will likely have lower benefits from Social Security to aid fund your retirement over the next xx-xxx+ years.

If you start taking Social Security at age 62, rather than waiting until your full retirement age (FRA), y'all tin look up to a thirty% reduction in monthly benefits with lesser reductions as you arroyo FRA. Remember, FRA is no longer age 65: Information technology now ranges from 66 to 67, depending on your appointment of nativity (see your total retirement age). And your annual cost-of-living adjustment (COLA) is based on your benefit. So if you begin claiming Social Security at 62 and start with reduced benefits, your COLA-adapted benefit will be lower too.

Waiting to claim your Social Security benefit will effect in a higher benefit. For every year you filibuster your merits past your FRA, you get an 8% increase in your benefit. That could be at least a 24% higher monthly do good if you delay claiming until historic period 70. But, make sure to evaluate your decision based on how much you lot've saved for retirement, your other sources of income in retirement, and your expectations for longevity.

While many people could benefit from waiting to age lxx to take Social Security payments, others may need this source of guaranteed income sooner to help pay their bills, or they may anticipate non living long enough to reap the rewards of delaying.

The downside of claiming early: Reduced benefits

Consider the following hypothetical example. Colleen is 62 as of 2022. If Colleen waits until age 67 (her FRA) to collect, she will receive approximately $2,000 a month. Notwithstanding, if she begins taking benefits at age 62, she'll receive only $1,400 a month. This "early retirement" penalty is permanent and results in her receiving upwardly to thirty% less twelvemonth after year.

Nevertheless, if Colleen waits until historic period 70, her monthly benefits will increment another 24% over what she would receive at her FRA, to a full of $two,480 per month.^ane If she were to live to historic period 89, her lifetime benefits would exist well-nigh $112,000 more, or at to the lowest degree 24% greater, because she waited until age 70 to collect Social Security benefits.² (Note: All figures are in today's dollars and earlier tax. The actual do good would be adapted for inflation and would maybe be subject to income revenue enhancement.)

Spouses and Social Security

You can claim Social Security benefits based on your spouse's piece of work record. If claiming spousal benefits provides more than, claiming before your FRA on a spouse's tape means you lot'll lose even more than than claiming on your own record—the benefit reduction for a spouse is up to 35% while the reduction for claiming your ain benefit is up to thirty%. For instance, if you're the spouse of Colleen in the above instance and y'all are the same age, you'd be eligible for only $650 a month at age 62—35% less than the $1000 a month you would get at your FRA of 67.

Your determination to take benefits early on could outlive you. If you were to dice before your spouse, they would be eligible to receive your monthly amount equally a survivor benefit—if it's higher than their ain amount. Merely if you take your benefits early on, say at age 62 versus waiting until age seventy, your spouse's survivor Social Security benefit could be up to xxx% less for the residual of their lifetime.

Span to Medicare at age 65

Remember that while you are eligible for reduced Social Security benefits at 62, yous won't be eligible for Medicare until historic period 65, so you volition probably have to pay for private health insurance in the concurrently. That tin can swallow upwards a large chunk of your Social Security payments.

Read Viewpoints on Fidelity.com: Your span to Medicare

Fiscal benefits of working longer

Many people want to retire as shortly as it is financially feasible to do so, but it'southward crucial to consider the earning and investing power you may surrender if you terminate working full-time and take Social Security at 62. If you leave a job with good pay and benefits, it may be difficult ever to regain that level of compensation if you lot need or want to return to work afterwards. Of course, non everyone can keep working, just information technology is something to consider if yous are healthy and accept the opportunity to stay in the workforce, in either a full-time or part-time chapters.

The compensation benefits of your job could too touch on your Social Security. Some companies allow stock awards to continue to vest (pay out, and equally a result, incur income taxes) afterward retirement engagement, and even into years to follow. These payouts are considered income, and could crusade your Social Security payment to exist taxed, or taxed at a higher level than in years after the awards have fully distributed. Delaying Social Security payments until those other income sources have been reported for tax purposes is worth consideration.

Tip: Women often live longer than men, and they're more probable to depend on one income when they're older. Don't make the fault of coupling your decision to leave the workforce, peculiarly during COVID, with your Social Security challenge strategy. Call back, past the time yous get into your 80s, yous have fewer fiscal options, so don't jump at the first opportunity to claim Social Security at age 62 simply because yous may want to quit your electric current task.

Simply at that place's even more than to the story. Equally y'all approach retirement, y'all're often at the upper end of your lifetime earnings trajectory—and of your power to save more for retirement. In addition, if you can go on working, yous can make "take hold of-up" contributions to a tax-deferred workplace savings plan like a 401(k) or 403(b) or a traditional or Roth IRA. Take hold of-up contributions allow you lot to set aside larger amounts of coin for retirement.

Retrieve, if you determine to stop working at 62, you lot volition stop tax-advantaged saving opportunities, and if you decide to claim Social Security early, you will cap your Social Security benefits throughout your retirement—and you may need to begin to draw down your savings earlier than you lot desire.

When yous factor in longevity, health care, and the cost of your expected lifestyle in retirement, your conclusion on whether or not to claim Social Security at historic period 62 may become clearer.

Read Viewpoints on Allegiance.com: Social Security tips for working retirees

See how claiming at different ages could impact your benefit.

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Explore options on when and how to take Social Security.

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