The Argument for Taking Social Security Benefits at 62

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Retirement is something that you have waited for all your life. With one major supply of your income likely to come from Social Security, it is common that you would begin to salivate at the thought of having your hands on the money you have worked so difficult for your entire life. That is why it can be such a difficult decision to choose whether to start taking the money at 62 or wait until you are 67 in order to receive your full-benefits for the rest of your life. While quick money is always desirable, keep in mind that the possibilities good of you living to your mid-80s. Receiving up to 30 percent more income every month as a result of waiting 5 years is hard to pass up as well. Here are a few arguments to make for taking your Social Security benefits at 62.

You Have More Expansive Goals

If you are fortunate enough to produce other retirement income than just Social Security, you might have different goals for your money. You might have trips planned and a complete lifestyle already mapped out that makes you pretty self-sufficient. Keep in mind that the only way to get 100 percent of your Social Security benefits is to wait until you are of official retirement age before collecting on it. If you decide to start getting the money at the age of 62, you are looking at roughly a 30 percent money reduction in your benefits. If you're already quite active at 62 and are looking to cross as many items off your bucket list of things to do before your health declines too much, then taking the money out early might not be that big of a deal for you. It is a decision that you will have to weight against the reality that you may well live to your 80s or 90s, so make sure that you have sufficient income to make up for the difference.

Your Family May Receive Benefits

More and much more Americans are living into their 60s with minor children with you. If you are one of them, then certain Social Security rules apply to you that might make it worthwhile to begin collecting benefits at 62. Eligible children, for example, can receive up to a total of 50 percent of your insurance amount, no matter when you start to claim your benefit. This PIA is actually the estimated amount of your Social Security benefits at retirement. This means that your children or spouse could start to draw that money when you are 62, and they'd be receiving the same benefit amount that they would get if you were to hold back until you reach full retirement age yourself.

Job Loss or Health Considerations

Everybody approaching retirement age has a different situation and station in everyday life. As you get in your 60s, you will probably find that you have no job with no way to live off just social security. You might need to start receiving your benefits at the age of 62 in order to make amends for this. There is also a one time provision where you can reverse this decision within 12 months of making it. That could provide you with the time you need to have money to make ends meet while you secure a job. Do keep in mind that you would need to pay the cash received back to Social Security if you decide to reverse the decision within that Year. You might also find that you are in ill health and know you will not be living to your 80s. We certainly this is not the case, but the reality is that not everyone lives for 30 or 40 years in retirement. If you are in poor health, it might make sense to start having your benefits early, knowing that the difference will not really matter that much ultimately.

While you will probably find that most financial planners will advise you to wait until full retirement age before claiming Social Security, these are three notable exceptions towards the rule. Keep in mind that every person differs. You need to decide what is best for you and your family when it comes to your financial planning. Many of the true when it comes to deciding when you should start taking out your Social Security benefits.

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