Collecting Social Security at 62: Perspectives and Implications
Opting to collect Social Security benefits at the age of 62 is a significant decision that many Americans face. While this option offers early financial support, it comes with both advantages and disadvantages that impact individuals differently. Here’s a closer look at what it means to take Social Security at 62 and how beneficiaries feel about their choices today.
The Basics of Social Security at 62
The Social Security Administration (SSA) allows individuals to start receiving benefits as early as age 62. However, this comes with a catch: benefits are reduced if claimed early. For those born in 1960 or later, the full retirement age is 67, meaning that taking benefits at 62 results in about a 30% reduction.
Reasons for Early Collection
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Immediate Need: Many individuals find themselves in urgent financial situations. Early retirees often cite job loss, health issues, or the need to support family members as reasons for claiming benefits early.
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Longevity Considerations: Some people feel that starting benefits earlier allows them to enjoy their retirement years while they can, factoring in the uncertainty of how long they might live.
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Supplemental Income: For those who continue to work, Social Security can provide much-needed additional income, albeit with earnings limits that can reduce benefits if they exceed a certain threshold.
- Lifestyle Choices: Some individuals prioritize experiences such as travel and leisure, while they are still young and able, making early claims appealing.
Emotional Insights from Beneficiaries
The feelings and sentiments of individuals who opted to collect Social Security at 62 vary widely:
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Relief and Freedom: Many beneficiaries report a sense of relief and newfound freedom. The monthly payments alleviate immediate financial pressures, enabling them to make choices they may not have otherwise considered.
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Regret and Reflection: Conversely, others express regret about claiming early. They ponder whether waiting might have provided a more comfortable financial situation in later years, especially if they anticipate needing additional resources as they age.
- Empowerment: Some retirees feel empowered by the decision to take control of their finances at an earlier age. They appreciate the autonomy of being able to make lifestyle choices without depending on a job.
Financial Implications
The decision to collect Social Security at 62 also has long-term financial ramifications. With reduced monthly payments, individuals who claim early may experience challenges in their later retirement years, particularly if unexpected expenses arise. This is a significant concern in a time when healthcare and living costs continue to rise.
In Conclusion
The choice to begin collecting Social Security at 62 is deeply personal, influenced by individual circumstances, financial needs, and life goals. As this option evolves, it’s important for would-be retirees to weigh both the immediate benefits and future implications. Beneficiaries’ experiences may be mixed, with some feeling satisfied and others wrestling with regrets. Ultimately, understanding the full spectrum of this decision can help individuals make informed choices that align with their long-term financial well-being.
As the landscape of retirement continues to shift, ongoing discussions and research will be essential to address the needs and feelings of those navigating this important phase of life.
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The average yearly COLA since 2015 is 3.15%, approximately there's a $900 difference between 62 and 67 FRA. At this rate, it would take about 12 years to reach the FRA estimate from 62 solely due to COLA.
The average break-even for the 67-year-old from not drawing at 62 is 11 to 13 years (78 to 80 years of age). Collecting at 62, and by 74, the person will be at the FRA inception SSA estimate (alternate perspective).
Break even point is age 78. Are you going to live that long??
AARP has never been honest about Social Security and Medicare and what each party promised and planned should they be elected in the 2024 election. In your attempt to be neutral you never informed your 36 million subscribers that the Trump Administration (regime!) planned on reducing/eradicating this program, lying daily that this program is funded with tax dollars when we all know it's funded from every paycheck each of us ever earned, and that the program is only paying back what each of us contributed for all our working lives. Now that he’s in power again your organization pretends that it has a say with the current regime…your responsibility was to warn your subscribers of what they had to lose if they voted this man back into power. Your so-called “neutral stance” on the real issues people were voting for has hurt all Americans. Shame on your organization for never printing the truth of what this man promised at every rally and is now undertaking: destroying democracy and destroying the social programs we all paid into.
Took at 63 (teacher had to wait for law to change) and so glad. Hubby took at 65. We are so glad and never looked back. No one knows their expiration date and our life in enriched by the monies we put in during our working years. We manage it wisely just like we did our working paychecks.
Break even is around 80 yrs old. How long you gonna live and what do you expect to spend at 80? Everyone has a different situation, but those two factors determine when you should collect. Certainly, I realize those are difficult questions to answer. I'm getting mine at a 62,
I plan on getting it at 62 and working part-time
Collect at 62 and put those checks in an online account that pays 5% and never touch it till your 70. So tell me how thats worse than waiting till 70
Don’t forget the 35 year rule
I noticed they didn't interview any dead people.
I'm in a weird place at 61. I'm applying asap.
They are reading a script
In a perfect world, DON’T WAIT!!!!!! You ain’t promised tomorrow…….
My husband and I are the same age,at 62 took our Social Security, best thing we ever did!!
I am thinking about collecting at 62 – i have a pension from my job and if something happens to me she gets the same amount- trust me its more then what ss would give me at 65 or 67 or 70 –
Ask the dead people….
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
My dad filed @ 62 & they only gave him 50% after paying into it for 50 years they screwed him out of
25 years worth of SSi because he filed 3 whole years yearly. What a scam. this stinks of republicans.
I had to wait until 67 now people have to wait until 70. Next it will be 80.
!
My husband didn’t pay enough into ss for me to benefit very much. So I did apply earlier @ age 62. I was a widow @ the time.
Call the SS office and ask about Voluntary Delay Retirement Credits. You will have to push and push because not many really know about. This isn't a scam or anything like that. What VDRC means is that if you take at 62 And then realize after maybe 2-3 years, you made a mistake. You can call SS office. Tell them to suspend your benefits. Then call them back when you are 67 or so and want to start benefits back up. You will get those 8% increases from the time you stopped to when you start back up again.
This video is obviously biased to scare people into delaying collecting Social Security. If you're considering waiting until 70 to get higher monthly payments then you need to weigh that against what you could have if you started collecting as soon as possible then simply invested all of your payments until you turned 70 then bought an annuity with that money you collected from 62-70 plus investment gains to add to your Social Security payments. Which of those two approaches would result in a higher monthly payment? I'd wager taking the money ASAP and the investing yourself would be better in the long run and it would certainly benefit your estate a lot more if you die younger.