3 Awful Reasons to Take Social Security Benefits at 62
When we think about filing for Social Security, we're generally looking at an eight-year window that begins at age 62 and ends at age 70 (technically, you don't have to file once you reach 70, but there's no financial incentive to postpone past then). Now at first glance, 62 might seem like the most ideal age to take benefits, since it means getting your hands on them as soon as possible. But while there are a few valid reasons to claim Social Security at 62, going this route can also backfire. Here, in fact, are three terrible reasons to rush to take benefits at the earliest age possible.
It's not a secret that Americans are behind on retirement savings across the board, but it's especially frightening to see how little near-retirees have put away. The Economic Policy Institute reports that the median savings balance among households aged 56 to 61 is a mere $17,000. Think about it: That's $17,000 worth of income over the course of what could be a 20-, 25-, or even 30-year retirement. What this means is that anyone in the same situation or similar will no doubt become reliant on Social Security upon leaving the workforce, and that's why it pays to get the most out of those benefits, not the least.
IMAGE SOURCE: GETTY IMAGES.
Source: Fool.com
