Social Security Report

Q & A

Should I take my Social Security benefits at 62 because I’m eligible?

Complete Question: I just turned 62 and my husband will be 66 in 2015. We are both eligible for Social Security benefits due to our own work and do not have to rely on spousal benefits. My husband took his benefits at 62 because someone told him he should just because he is eligible, so why not? Now I’m 62 and I’m eligible, but we don’t need the money right now. Should I file for my benefits anyway just because I’m eligible?

Answer: I’m glad you asked. For some reason a lot of people are being told that they should file just because they’re eligible, but there are so many options out there to make your benefit larger in the long run. Some people do actually need to file at 62 because they actually need the extra money to pay the bills, especially in today’s economy. But if you do not have to have the money right now, you may want to look at the different options you have and make a decision that’s right for you and your husband.

You mentioned that your husband is 65, soon to be full retirement age (FRA). Once he is 66, your options will increase even more. You may or may not know that spousal benefits are significantly reduced. If you receive spousal benefits at FRA, they are only 50% of your husband’s benefit. At age 62, your spousal benefit will only be approximately 35% of his benefit. However, what you can do is take this spousal benefit and let your own benefit increase in the meantime because if you take your own benefit now at age 62, you will only receive 75% of it and this is a PERMANENT decrease. If you can wait even longer, let’s say until you are 63, you will receive a 37.5% spousal benefit. Or let’s say that you both have some savings and you don’t want to file at all and you don’t even need his current benefit. Once your husband reaches FRA, he can voluntarily suspend his benefit and let it increase 8% per year up to the maximum age of 70. In the meantime, you still have the option of collecting a spousal benefit if the need arises. Point being, you have many options at your disposal if you do not currently need the cash. The best thing to do is examine your financial situation and figure out what works best for you and your husband today and in the long run. Also remember that the higher benefit received, the higher benefit a surviving spouse will receive.

 Notice: If you have any additional questions on determining your maximum benefit or any other Social Security questions, you can reply below. If you would like to discuss your situation privately, you can email C.J. Miles at cmiles@amacfoundation.com. Please do not provide any personal identification information such as Social Security numbers.