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How To Get Social Security At 62

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No One Else Is Relying On Your Benefits

Should you take your Social Security benefits at age 62?

In the event of your death, a surviving spouse, minor or disabled child can receive money from the Social Security Administration based on the amount of your benefits. For example, a surviving spouse can receive between 71.5% and 100% of your benefit amount, depending on the surviving spouses age. A disabled child can receive 75% of your benefits each month even after youre gone.

If no one else can qualify for benefits based on your record, you might want to retire early because no one is depending on that money. If everything else falls into place and you meet the minimum Social Security retirement age, consider collecting your benefits early and enjoying life.

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What If I Change My Mind

If you receive Social Security benefits at a reduced rate, but then change your mind, you have the option of withdrawing your application and paying back to the government what you’ve already received . Then, you could restart benefits at a later date to take advantage of a higher payout. But you are limited to one withdrawal per lifetime.

For example, let’s say you elected to receive early benefits at age 62, but then decided to go back to work at age 63. You could withdraw your Social Security application within the first 12 months of receiving benefits, pay back the years’ worth of benefits you received, go back to work, and then wait until a later age to restart your benefit checks at a higher level.

For important details about repaying benefits please read the SSA publication If You Change Your Mind.

Do You Plan On Working After Age 62

Another key factor in your decision is whether or not you plan to continue working after you start collecting Social Security benefits at age 62. That’s because income you earn before full retirement age may reduce your Social Security retirement benefit. Specifically, if you are under full retirement age for the entire year, $1 in benefits will be withheld for every $2 you earn over the annual earnings limit .

Example: You start collecting Social Security benefits at age 62. You continue working, and your job pays $30,000 in 2021. Your annual benefit would be reduced by $5,520 .

Note: If your monthly benefit is reduced in the short term due to your earnings, you’ll receive a higher monthly benefit later. That’s because the SSA recalculates your benefit when you reach full retirement age, and omits the months in which your benefit was reduced.

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Are Mutual Funds For Retirement

Mutual funds are an investment option that is usually available to owners of retirement accounts. You may choose one or more mutual funds and other investments for your IRA or 401 plan. A retirement account may hold any type of investment, such as ETFs, stocks, bonds, commodities, or even real estate.

Determining Which Retirement Age Is Best For You

Can I Get Social Security Widow

Should you take the money and run at age 62? Or hold out until you’re 70? Approximately 50% of people don’t wait past age 62, usually because they need the money, are convinced that Social Security might collapse at a later date, or are fearful of a short life span.

But is early retirement a good option for you? The questions below will help you decide.

Are you still working? Some people, especially construction workers and other physical laborers, are less physically able to handle work at 62, even though they don’t qualify for disability. They may be good candidates for early retirement. However, if you’re still able-bodied and interested in working, you might want to avoid claiming early retirement benefits. If you’re earning a high salary, you’ll miss the opportunity to boost your Social Security payment amount.

Second, you’ll lose one dollar in benefits for every two dollars you earn over the SSA’s earnings limit . There are no such deductions if you work after reaching full retirement age. The SSA provides an online earnings test calculator to determine whether working will lower your retirement benefits.

How’s your health? If you’re convincedâeither by genetics, research, or the amount of time you spend in doctors’ officesâthat you’ll have a shorter lifespan than your peers, it doesn’t make much sense to delay your retirement benefits.

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    Will Taking Social Security At Any Time Affect My Medicare

    Though they are separate programs, there are some beneficial connections between them.

    If you’re receiving Social Security benefits, Social Security works with Medicare and you’ll get an initial enrollment package from Medicare 3 months before the month of your 65th birthday.

    Also, your Medicare premiums will most likely be collected by Social Security if you are already receiving those benefits. Social Security will send a notice before the deductions begin. If you arent receiving Social Security retirement benefits, you’ll get a monthly bill from Medicare.6

    What’s Full Retirement Age

    Full retirement age is when you’re eligible to receive full Social Security benefits. Your full retirement age depends on your birth year: Under current law, if you were born in 1955 or later, your full retirement age can be anywhere between age 66 and 2 monthsall the way up to age 67 for those born after 1959. If you were born before 1955, you’ve already reached age 66 and full retirement age.

    Retirement ages for full Social Security benefits

    If you were born in

    Your full retirement age is

    1954 or earlier

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    What Are The Benefits Of Turning 62

    Turning 62 in 2021? Heres What You Need to KnowYou can sign up for Social Security but that doesnt mean you should. Age 62 is the earliest age to file for Social Security benefits, and its also the most popular age to sign up among eligible seniors. You wont be eligible for Medicare. You may want to work a bit longer.Jan 3, 2021

    Get Your Money Sooner

    Early Retirement Social Security | 3 Reasons You Should Take Social Security at Age 62

    When it comes to signing up for Social Security, you have choices. You can file as early as age 62, but if you don’t wait to file until full retirement age — which isn’t until 67 if you were born in 1960 or later — then your monthly benefit will be reduced on what’s generally a permanent basis. Still, in some cases, claiming benefits at 62 makes sense. Here are some great reasons to go that route.

    The $17,166 Social Security bonus most retirees completely overlookIf you’re like most Americans, you’re a few years behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

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    What Is The Maximum Social Security Benefit For A 62 Year Old

    What is the maximum Social Security benefit at age 62? The maximum monthly Social Security benefit that an individual can receive per month in 2021 is $3,895 for someone who files at age 70. For someone at full retirement age, the maximum amount is $3,113, and for someone aged 62, the maximum amount is $2,324.

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    Your Benefits Will Be Permanently Reduced

    As we’ve mentioned, claiming your benefits early means they will be reduced on a permanent basis. For example, as the table above illustrates, someone born in the 1960s or later who takes their benefits starting at age 62 will get 30% less each month for the rest of their lives than if they’d waited until their full retirement age of 67.

    Children Can Also Collect Social Security Benefits

    When to Take Social Security Retirement Benefits

    Minor children of Social Security beneficiaries can be eligible for benefits. Children up to age 18 and disabled children older than 18 may be able to receive up to half of a parent’s Social Security benefit. The disability must have occurred before the age of 22. The adult child can continue collecting the benefit even after the parent has died, as long as the disability prevents them from working.

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    You’ll Slash Your Monthly Benefit For Life

    Your monthly Social Security benefit is based on your earnings during your highest-paid 35 years in the workforce. And you’re entitled to that complete benefit once you reach full retirement age, or FRA.

    FRA is either 66, 67, or 66 and a specific number of months, depending on your year of birth. But for each month you claim benefits ahead of FRA, they’ll be reduced on a permanent basis. If your FRA is 67 and you sign up at 62, you’ll lose 30% of your benefit, so that’s a hit you’ll want to make sure you can afford to take. And if you don’t have a lot of retirement savings, you may want to sign up at a later age.

    Social Security Disability Insurance

    The Social Security program allows people who have suffered a disability that impacts their ability to work to collect Social Security benefits before the age of 62. In fact, there is no minimum age to qualify for Social Security Disability Insurance, and the 10 years of paying into the system is not a requirement. However, you must be able to prove that your medical condition meets the standards set by the Social Security Administration and you must be able to prove that your disability prevents you from working today and into the future.

    According to the ssa.gov website, disability is defined as the inability to engage in any substantial gainful actively by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for as continue spider of not less than 12 months.

    This is a program designed to protect people who have experienced a physical or mental event that made them incapable of performing a job for which they were paid previously or could be paid for going forward.

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    Reasons Not To Take Social Security At Age 62

    One reason to delay your benefits is that Social Security will withhold part of your benefits if you earn more than the annual Social Security earnings limit. This only applies before your full retirement age of 66 or 67. A portion of your Social Security benefit is withheld and slowly paid back to you after you reach your full retirement age.

    As of 2022, during the year you reach full retirement age, the Social Security Administration withholds $1 from your benefits for every $3 you earn above $51,960.

    There is no reason to wait until you’re past the age of 70 to begin drawing Social Security.

    In the years before you reach the year you turn full retirement age, the SSA withholds $1 for every $2 you earn above $19,560 .

    You may also want to wait if you’re single, have little saved for retirement, and have a longer life expectancy. In this situation, you should consider working as long as possible to maximize your benefits then, wait as long as you can to begin your benefits, since you don’t have other retirement accounts to draw on.

    If your spouse still works and has earned income, a larger portion of your Social Security benefits will be taxed if you start before your full retirement age.

    Another consideration is if you’re married, your spouse’s benefit might be smaller than yours, and/or your spouse is much younger than you. When married, your combined life expectancy will be longer than either of yours as a single person.

    How Much Can You Make And Draw Social Security At 62

    Collecting Social Security at 62 How They Feel About It Now

    If youre younger than full retirement age, there is a limit to how much you can earn and Page 3 2 still receive full Social Security benefits. If youre younger than full retirement age during all of 2021, we must deduct $1 from your benefits for each $2 you earn above $18,960.

    Why do so many people claim social security at 62?

    • The simplest explanation for why so many people claim Social Security at 62 is because they cant claim benefits any earlier. Many people count the days until they can get benefits because they need this money to leave the workforce or to survive comfortably if theyve already been forced out of a job.

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    Tax Considerations For Social Security Benefits

    How do these tax considerations affect when you should apply for Social Security benefits? At todays , they may not have much of an impact on most people. Still, tax rates and income thresholds can change, so its worth remembering that you will lose less of your Social Security to taxes if you are in a lower marginal tax bracket when you begin to collect.

    You should also note that if you decide to return to work, even part-time, and arent yet at your FRA, your Social Security benefits may be temporarily reduced. The reduction is $1 for every $2 of earned income over $18,960 in 2021 . During the year when you reach your FRA, your benefits will be reduced by $1 for every $3 in income over $50,520 in 2021 until the month when you become fully eligible. That money isnt lost, however. The SSA will credit it to your record when you reach your FRA, resulting in a higher benefit.

    The Downside Of Claiming Early: Reduced Benefits

    Consider the following hypothetical example. Colleen is 62 as of 2022. If Colleen waits until age 67 to collect, she will receive approximately $2,000 a month. However, if she begins taking benefits at age 62, she’ll receive only $1,400 a month. This “early retirement” penalty is permanent and results in her receiving up to 30% less year after year.

    However, if Colleen waits until age 70, her monthly benefits will increase another 24% over what she would receive at her FRA, to a total of $2,480 per month.1 If she were to live to age 89, her lifetime benefits would be about $112,000 more, or at least 24% greater, because she waited until age 70 to collect Social Security benefits.2

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    No : Your Surviving Spouse Might Thank You

    When one member of a married couple passes away, the surviving spouse can often get the higher of the couple’s two Social Security benefits. While the surviving spouse might be able to live on less than the two could live on as a married couple, the loss of income from going down a benefit could still be financially painful.

    In addition to the direct loss of money, a widow or widower soon loses the ability to file taxes jointly. That means that any remaining income might be exposed to higher taxes, which could make a tough situation even tougher.

    As a result, consider who you may leave behind once you pass and what your passing will mean for their financial well-being before deciding when to collect your Social Security benefit. Waiting a bit could make an incredible difference to someone you love.

    Have You Thought About Your Longevity

    Why Smart People Take Social Security at 62

    Is it better to take reduced benefits at age 62 or full benefits later? The answer depends, in part, on how long you live. If you live longer than your “break-even age,” the overall value of your retirement benefits taken at full retirement age will begin to outweigh the value of reduced benefits taken at age 62.

    You’ll generally reach your break-even age about 12 years from your full retirement age. For example, if your full retirement age is 66, you should reach your break-even age at 78. If you live past this age, you’ll end up with higher total lifetime benefits by waiting until full retirement age to start collecting. However,unless you’re able to invest your benefits rather than use them for living expenses, your break-even age is probably not the most important part of the equation. For many people, what really counts is how much > they’ll receive each month, rather than how much they’ll accumulate over many years.

    Of course, no one can predict exactly how long they’ll live. But by taking into account your current health,diet, exercise level, access to quality medical care, and family health history, you might be able to make a reasonable assumption.

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    Calculating Your Retirement Benefits For Each Option

    To find out how much your benefits will increase or decrease depending on the age you retire, go to Social Security’s Early or Late Retirement Calculator. The SSA also offers online calculators to help you estimate your retirement benefits at each age. You can also see a personalized comparison of retirement benefits at age 62, at full retirement age, and at age 70 on your Social Security Statement. Go to www.ssa.gov/mystatement to view your statement. Social Security sends out printed statements every five years to those not receiving benefits, and every year to those over 60.

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