3 Times You'd Be Silly Not To Claim Social Security At Age 62

The Social Security program is a federal project that offers tremendous financial mobility to older Americans. According to the Social Security Administration, 97% of retirees in the U.S. already do or will receive Social Security benefits. It's worth noting that some people do remain ineligible for Social Security benefits, but the circumstances in which you wouldn't qualify are so slim that worrying about it isn't worth your time. However, future recipients do need to concern themselves with a different question when it comes to initiating their Social Security benefits. 

Benefits checks do not simply start arriving one day. In fact, recipients need to apply for benefits when they are ready to begin receiving them. While you might think that your full retirement age of 66 or 67 (depending on the year you were born) is the right time to begin these benefits, the reality is that you can technically apply for benefits early, at 62 with reduced payouts. While financial pundits like Dave Ramsey suggest applying early – whether you follow his particular advice or approach retirement through a different lens, there are actually a number of reasons why starting your benefits as early as possible makes a lot of sense. To be more specific, there are three circumstances in which claiming early retirement is an easy decision.

Social Security benefits aren't just there for retirees. The SSA provides disability insurance and a variety of other financial support systems for Americans in a range of unique situations. This includes payments to help children who have lost their parents and even safety nets for Americans living in some of the most cash strapped circumstances. Another tool that the SSA offers is the spousal benefit. Married couples have the option to draw Social Security checks either from their own working record or at a rate of about 50% based on their significant other's time in the workforce.

Because of this, families who may have had a single earner working to support the household financially aren't left behind when it comes time to retire. In situations where one parent left the workforce to raise children full time, the spousal benefit can serve as a way of supporting this equally crucial partner in retirement. This is especially relevant for those who may not have spent enough time in the workforce to qualify for their own individual benefits. There's also an opportunity for certain couples to make the most of their retirement funding. If you know that the spousal benefit will deliver a higher benefit value than your own earnings, you should begin drawing your Social Security benefit at 62 — while waiting on your spouse to begin claiming their own benefits later on. This can maximize both their benefit amount and your spousal benefit payout.

The realities of the job market aren't always warm and fuzzy. Many people work in jobs that they absolutely hate. In fact, in 2023 the Pew Research Center found that only 51% of workers said they were extremely or very satisfied at work while a full 12% were decidedly unhappy. Those who work in jobs they despise might be great candidates for the financial independence, retire early (FIRE) movement. Similarly, those who work in physically demanding jobs could be looking for a way out. Research has shown that the longer you work in a job like this, the more likely it is that you'll spend your retirement years in a greater level of pain — or even have to work around physical limitations. 

You might also be in a position where taking care of a loved one becomes a necessity. With that said, balancing these obligations with your job requirements can be exceedingly difficult, and retiring early may not be in the cards for everyone. However, for diligent savers who hate their working conditions or those with more robust retirement strategies in place, exiting the workforce at 62 could be worthwhile. Plus, at 62 you do gain access to benefits that can help make the transition possible.

On a more dour note, plenty of older Americans manage their current lifestyle while dealing with some kind of long term health complication. Those who have poor health in one way or another — or people who may be prone to lifetime-shortening diseases based on their family history — are significantly incentivized to begin their retirement as early as possible. The average life expectancy for Americans today is 77.5 years (74.8 for men and 80.2 for women). With a Social Security benefit break even point somewhere around 80, give or take a bit depending on your individual payout figures, claiming at 62 might be the obvious choice. For those who don't expect to enjoy a lengthy retirement, retiring early can leave some of your best golden years still on the table.

Almost everyone wants to extend the amount of time they get to enjoy relaxing — and not clocking in on a daily basis — but this change of pace is particularly important for those who anticipate a curtailed set of elderly years or even a retirement marked by frequent visits to the doctor to manage a chronic problem. Getting out early can allow you to enjoy the time you have while it's still there for the taking.