I Used to Say I'd Never Claim Social Security at 62. Here's Why I've Changed My Mind
Choosing when to claim Social Security is a significant decision that can impact your financial future. For years, I was adamant that I would wait until at least 67, the age at which I would receive my full benefits. However, my perspective has shifted, and I now find myself considering filing for benefits at 62. Here’s why.
Understanding My Options
When it comes to Social Security, the flexibility in choosing when to sign up is a unique advantage. While I can estimate my benefits online, the uncertainty of my future earnings makes it challenging to pinpoint an exact figure. Based on my birth year, I know that my full retirement age is 67, which means I can receive my complete monthly benefit based on my work history. Additionally, delaying my claim past this age could increase my monthly benefit by 8% for each year I wait, up to age 70.
However, the earliest I can claim Social Security is at 62. This option comes with a reduced monthly benefit, which is a significant factor I previously considered a dealbreaker. For years, I was convinced that waiting until 70 was the best strategy for maximizing my benefits.
Reevaluating My Retirement Plans
Despite my long-held beliefs, my retirement plans and savings strategies have remained consistent. I envision a peaceful life in a remote area, enjoying nature, traveling, and continuing to work in some capacity. My savings habits have also been stable; I’ve consistently maxed out my retirement accounts and have been contributing to a health savings account (HSA) since my family switched to a compatible health insurance plan.
My financial strategy has always been to save enough for retirement so that Social Security would be a supplementary source of income rather than a necessity. Given the uncertainty surrounding the program's future, I wanted to ensure I wouldn’t rely on those benefits for essential expenses.
The Case for Early Filing
Recently, I’ve come to realize that claiming Social Security early doesn’t necessarily contradict my financial strategy. My plan has always been to use Social Security benefits for discretionary spending—travel and hobbies—rather than for basic living expenses. By filing at 62, I would access my benefits sooner, allowing me to enjoy that money while I’m still relatively young and active.
While I would receive a smaller monthly benefit by claiming early, the trade-off might be worth it. The prospect of enjoying my benefits while I’m in better health and able to travel is appealing. After all, there’s no guarantee that my health will be better at 67 than it is now.
Looking at the Bigger Picture
It’s essential to consider your unique financial situation when deciding when to claim Social Security. For some, waiting until full retirement age or beyond may be the best option. However, if you’ve saved adequately for retirement and have the flexibility to claim early, it might be worth reconsidering the traditional approach.
If you’re nearing retirement with limited savings, claiming early may not be advisable. But for those who have prepared well, filing at 62 could provide the opportunity to enjoy life’s experiences sooner rather than later.
In conclusion, while I once believed I would never claim Social Security at 62, my changing perspective reflects a broader understanding of my financial situation and retirement goals. It’s a reminder that flexibility and adaptability are crucial as we navigate our financial futures.