Claiming Social Security at 62? How to Know If the Math Works for You.

The property you statesman taking Social Security volition person a profound effect connected your retirement, sometimes influencing your payment magnitude by hundreds of dollars per month.

The mean retiree collects astir $2,000 per period successful benefits, but the earlier you file, the little you'll receive. Here's however to find whether claiming astatine 62 is close for your retirement.

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Your payment magnitude is based connected 3 main factors: the magnitude of your career, your beingness earnings, and the property you statesman claiming Social Security.

To person the afloat payment you're entitled to based connected your enactment history, you'll request to record astatine your afloat status property (FRA). Your FRA volition beryllium connected your commencement year, but it's betwixt ages 66 and 67 for everyone.

The earlier you file, the smaller your monthly payments volition be. Filing astatine property 62 volition trim your benefits by 30% if you person an FRA of 67. These reductions are permanent, too, truthful expect to person smaller checks for the remainder of your beingness if you record early.

According to information from the Social Security Administration, the mean retiree collects astir $592 much per period astatine property 67 than astatine 62. At property 70, that quality jumps to $851 per month.

Data source: Social Security Administration. Table by author.

This doesn't needfully mean that claiming aboriginal is wrong, arsenic your filing determination volition beryllium connected your unsocial situation. However, finances volition beryllium a large origin to consider, arsenic your claiming property tin person an tremendous interaction connected your monthly income.

If you're considering filing arsenic aboriginal arsenic imaginable astatine property 62, you'll apt request a hefty nest ovum to marque up for the smaller monthly payments. Social Security was lone designed to regenerate astir 40% of pre-retirement income, truthful ideally, it shouldn't beryllium your superior income source.

For galore older adults, though, that's a struggle. Nearly 30% of retirees trust connected their benefits arsenic their lone root of income, according to The Motley Fool's yearly Social Security Cost-of-Living Adjustment Survey. In addition, astir 54% of retirees study having to instrumentality to enactment due to the fact that Social Security isn't capable to money their retirement.