Is It Better to Take Social Security at 62 or Wait Until 67?

Is It Better to Take Social Security at 62 or Wait Until 67?


Is It Better to Take Social Security at 62 or Wait Until 67?

Deciding when to start collecting Social Security can have a huge impact on your retirement income. You can start as early as age 62, but is it better to wait until full retirement age (FRA), which is 67 for most people?

Let’s compare the pros and cons to help you decide.

๐Ÿง“ What Happens If You Take Social Security at 62?

You’ll receive reduced monthly benefits — about 30% less than what you’d get at age 67.

✅ Pros:

  • Get money earlier

  • Helpful if you retire early or have health concerns

  • May be necessary if you can’t work

❌ Cons:

  • Lower lifetime benefit if you live long

  • Locked-in lower monthly payments

  • May affect spousal/survivor benefits

๐Ÿ‘ด What Happens If You Wait Until 67?

You’ll receive 100% of your full benefit.

✅ Pros:

  • Higher monthly income for life

  • Better spousal/survivor benefits

  • More tax-efficient in some cases

❌ Cons:

  • Delay in receiving funds

  • May not live long enough to “break even”

๐Ÿ“ˆ What About Waiting Until 70?

From age 67 to 70, your benefits increase by about 8% per year thanks to delayed retirement credits.

Example: $2,000/month at 67 → ~$2,480/month at 70
That’s 24% more, permanently

๐Ÿงฎ Break-Even Point: When Does Waiting Pay Off?

On average, if you live past age 78–80, you'll collect more by waiting.
If your health is good and you have other income sources, waiting is often better.

๐Ÿ” Other Things to Consider

  • Health and life expectancy

  • Other retirement income sources

  • Whether you're still working

  • Taxes — early withdrawals may trigger higher tax on benefits

๐Ÿ“ Conclusion

There’s no one-size-fits-all answer.

  • If you need the money, age 62 is fine.

  • If you can afford to wait, 67 or even 70 offers much higher lifetime income.

Talk to a financial planner to build a strategy based on your health, needs, and goals.


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