Claiming Social Security at 62 gives you immediate income, but waiting until 70 increases your monthly benefit. Claiming at 62 means taking a 30% cut compared to your full retirement age benefit, which is 66 or 67. Waiting until 70 allows you to receive the maximum benefit.
The decision involves more than finances. People in physically demanding jobs may need to claim early to preserve their health or shift to part-time work. Caregivers who cannot work full-time hours may also need the income sooner.
If you have a spouse who earned less, delaying your benefits can increase their survivor benefit, which equals either their current benefit or your former benefit, whichever is higher.
Many retirees use 401(k) accounts, IRAs, and other savings as a bridge to cover expenses in their mid-60s so they can delay Social Security until 70. Those without sufficient savings may need to claim early to cover living expenses.
The best claiming age depends on your financial situation, health, job demands, and lifestyle needs. It may be 62, 70, or somewhere between.