The No. 1 Reason to Claim Social Security at Age 62

Few retirement decisions loom as large as when to claim Social Security benefits. The age at which you begin receiving retirement benefits impacts you financially for the rest of your life.

The earliest you can collect Social Security retirement benefits is when you're 62. It's also the most popular age for Americans to claim benefits. What's the No. 1 reason to claim Social Security at age 62?

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Why so many Americans claim Social Security at 62

The question of why many Americans claim Social Security as early as possible is different from the question of what's the top reason to claim benefits at 62. And the answers are different, too.

Let's tackle the first question first. Nearly 30% of Americans opt to claim Social Security retirement benefits at age 62. Why is that number so high? It depends on whom you ask.

Schroders 2023 U.S. Retirement Survey found that 44% of Americans who haven't retired yet worry that Social Security will run out of money . That's why 40% of them intended to claim retirement benefits between ages 62 and 65.

A working paper published last year by two business professors, Cornell's Suzanne Shu and Duke's John Payne, revealed a different answer. Shu and Payne found that "psychological ownership of benefits" was a major reason individuals prefer claiming Social Security as early as possible. In other words, people view Social Security benefits as rightfully theirs because of their contributions and want their money sooner rather than later.

What's the No. 1 reason you should claim at 62?

Now for the more important question: What's the No. 1 reason you should claim Social Security retirement benefits at 62? The answer to this question will also depend on whom you ask.

Some say that the top reason you should collect Social Security benefits as early as possible is because of health issues. If you're in such poor health that you don't expect to live into your late 70s, claiming at age 62 could result in greater lifetime benefits.

I agree that health is a major factor in when to claim Social Security. However, I think there's another No. 1 reason to claim benefits at 62 that goes beyond health only. My view is that you should claim Social Security at 62 when, after considering all factors, you determine that doing so will best allow you to achieve your retirement goals.

What do I mean by "considering all factors"? Think about your health, all of your sources of retirement income (including Social Security), all your costs (especially health insurance), what you want to do in retirement, and anything else that makes a difference in your decision about when to claim Social Security benefits.

Waiting pays off for most people

That said, waiting to claim Social Security pays off financially for most people. Holding off until your full retirement age -- 67 for anyone born in 1960 or later -- could make sense because you'll avoid early-retirement penalties.

A study conducted in 2022 found that 90% of Americans would maximize their lifetime benefits by waiting until age 70 to claim Social Security. However, only around one in 10 choose to delay collecting benefits that long.

Ultimately, only you can decide when is the right age for you to claim Social Security retirement benefits. It's a big decision, but it isn't only a financial one.

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