People have a lot of options when it comes to seeking Social Security benefits. Once you are sixty-two, you can apply for benefits. You might also enlist in Medicare at age 65 in addition to signing up.
Alternatively, you could wait until you reach your full retirement age (FRA), which will vary based on your birth year and be either 66, 67, or anywhere in between for those who haven’t retired yet. Yes, you can actually file at any point after turning 62.
However, you’ll be qualified for what the federal government refers to as your “complete monthly benefit” depending on your salary history if you wait till your FRA. If you file before then, your monthly Social Security benefits will be reduced for the rest of your life.
Beyond FRA, you can postpone filing for Social Security. Your monthly benefits increase by 8% for every year you wait (until you are 70).
Apply For Social Security At Age 62
It’s common knowledge that applying for Social Security when you reach the age of 62 can negatively impact your finances. You will minimize the amount of your checks by collecting benefits as soon as feasible.
For example, applying for Social Security at age 62 will result in a 30% reduction in your monthly benefits if your FRA is 67. However, there are instances where filing for Social Security once you are 62 can benefit you financially.
You may receive more money over the course of your lifetime even if applying at the age of 62 will result in lower monthly benefits. You see, if you apply for your social security at age 62, you will receive more monthly benefits than if you waited.
In the event that you do not live a life that is longer than normal, it can be more advantageous for you to begin receiving Social Security benefits as soon as possible.
Consider the following scenario: You are debating whether to file for Social Security at age 62 or at age 67. Furthermore, let’s say that you would receive $2,000 per month at your FRA. If you filed at age 62, however, you would receive $1,400.
May End Up Putting Extra Money In Your Pocket
By delaying until FRA, you will ultimately accumulate $45,600 more in retirement if you live to be 85 years old. But the numbers are drastically different in cases they only live to be 75 years old.
In that scenario, you would receive $26,400 more in total benefits if you started claiming your social security at the age of 62 than if you had waited. For this reason, taking Social Security at age 62 isn’t always a bad financial decision.
It may wind up putting additional funds in your pocket, depending on how long you live. Naturally, it’s difficult to estimate how long you’ll live, which adds complexity to the issue of whether to apply for benefits.
However, you can evaluate your current health status. It could make sense to file for Social Security as soon as possible if you are approaching your 60s and already have a number of chronic illnesses.
You might wish to wait to file for payments until after your FRA if your physical condition is excellent. Naturally, it’s difficult to estimate how long you’ll live, which adds complexity to the issue of whether to apply for benefits. However, you can evaluate your current health status.
A Financial Loss
It could make sense to file for Social Security as soon as possible if you are approaching your 60s and already possess numerous chronic illnesses. You might wish to wait to file for payments until after your FRA if your physical condition is excellent.
You’re taking a little risk when it pertains to when to file for Social Security, regardless of the strategy you decide on, because you have no control over how long you’ll live.
However, you shouldn’t automatically assume that applying for benefits at age 62 will result in a financial loss. In the event that things work out that way, you could wind up with a larger payout from the programme.
