When it comes to applying for Social Security, you have options. You can file at the end of retirement age or FRA which is 66, 67 or somewhere in between depending on your year of birth and collect the full monthly benefit you are eligible for based on your income history. Or, you could delay filing a past FRA and score an 8% increase on your benefits for each year you held until the age of 70.
You can also apply for Social Security before the FRA. ̵1; Especially at age 62, it’s not surprising that 62 is the most popular age to apply for benefits, as older people get paid the fastest. But there is a downside to filing at 62 – you get much lower monthly benefits for the rest of your life.
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Now, the benefits that you will receive will depend on the body. But if you were born in the 1960’s or later and FRES. Your benefit is 67.You will permanently reduce your benefits 30% by claiming they are 62 years old.For some seniors, the visit is worthwhile, especially if they are willing to retire early. But before you rush to claim Social Security at age 62, consider that you may be living a lot longer than you expected, and filing a lawsuit early on that situation is a terrible idea.
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If you are not expecting a very long life, applying for Social Security at 62 may benefit you, but if you Live Longer Then the claim that at the age of 62 can hurt you financially in a number of ways.
First and foremost, you must receive the lower lifetime benefit from Social Security if you file at 62, assuming your FRA is 67 and you have lived up to the age of 97 and you are entitled to $ 1,500. Per month at the FDA If you file at the FRA, you will receive a total of $ 540,000.If you file at 62, you will only receive a lifetime total of $ 441,000.
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But that’s not all The longer you live, the more you risk running out of your retirement savings for the rest of your life. And when your money runs out, you may be more dependent on social security. At that point, are you able to collect lower monthly benefits? If that’s your only source of income, probably not.
That’s why making a Social Security claim at 62 isn’t always the best idea. While there is no way to predict how long you will live if you have no reason to believe you will die at a young age, waiting until an FRA or so may be a smarter move.
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Don’t make up your mind and you will regret it.
To be clear, there are situations in which applying for Social Security at 62 makes sense. For example, if you can’t keep working and you have to retire at age 62, claiming benefits is better than taking on debt just to cover your living expenses. And if you’re saving really well for retirement and can easily cover decades of living expenses with your IRA or 401 (k) plan, you may want to apply for benefits upfront and use that money to travel while you’re still old. Less.
So it’s important to think carefully before signing up for benefits, filing at 62 may work just fine for you. But keep in mind that you may regret your decision if you have to live longer than anticipated.