Planning to Take Social Security at 62? 3 Reasons to Wait Until 70
A big question for Americans nearing retirement is when to file for Social Security benefits. While the U.S. government has set full retirement age at 67 for people born in 1960 or later, Americans can choose to take a reduced Social Security benefit as early as age 62 -- or wait beyond full retirement age in exchange for a higher monthly payment.
Starting Social Security benefits at age 62 may make sense under certain circumstances. However, waiting until at least full retirement age -- and ideally age 70 -- to claim Social Security is usually the better option. Here are three important reasons to delay taking Social Security.
Social Security reduces your monthly benefit for life if you start benefits before full retirement age. If you were born in 1960 or thereafter and choose to begin taking benefits at 62, your monthly check will be reduced by 30% compared to what you would receive at age 67, your full retirement age. By contrast, for every year that you wait beyond full retirement age (up to age 70), your future monthly benefit increases by 8%.
Source Fool.com
