Resist urge to claim benefits at 62 – Here’s why
Most people do file for Social Security benefits early, at or close to age 62. The drawback is permanently lower monthly benefits for life. For someone with a full retirement age of 67, claiming at 62 means a 30% reduction. Maurie Backman notes in this piece that people underestimate how much money they will need in retirement. Health care costs in particular actually go up for many people. Backman also cites longer life expediencies as a reason to delay past age 62. Read the full piece here, which includes a hypothetical example of retiring early versus delayed filing and where the break even point is.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.