3 Great Reasons to Take Social Security Benefits at 62
Your standard Social Security benefit is based on your working history over your 35 highest-earning years. To get the standard benefit amount, you need to retire at a specific age called your full retirement age (FRA). Depending on the year you were born, you'd need to retire between the ages of 66 and 67.
Many people, however, opt not to wait that long. In fact, one of the most popular ages to claim benefits is also the earliest year they become available. That happens when you turn 62. The downside of starting your checks at that age, though, is that your monthly check is reduced by early filing penalties. These kick in for each month you retire ahead of FRA. They add up to around a 6.7% annual reduction for each of the first three years and an additional 5% annual reduction if you're claiming benefits more than three years early. You also miss out on delayed retirement credits that raise your benefit amount when you wait to claim between FRA up until age 70.
While early filing penalties can be painful, they're sometimes worth incurring if there's a good reason to retire at 62. And there are plenty of great reasons to start your benefits at this young age, including the three listed below.
Source Fool.com
