What are the disadvantages of retiring at 62?

Some Cons of Retiring Early

• It could be bad for your health.
• Your Social Security benefits will be smaller.
• Your retirement savings will have to last longer.
• You’ll need to find health insurance.
• You might get bored and miss working.

What happens if you retire at 62 instead of 65?

If your full retirement age is 67 and you claim Social Security at 62, your monthly benefit will be reduced by 30 percent — permanently. File at 65 and you lose 13.33 percent. If your full retirement benefit is $1,500 a month, over 20 years that 13.33 percent penalty adds up to nearly $48,000.

Can I collect Social Security the month I turn 62?

You can apply up to four months before you want your retirement benefits to start. For example, if you turn 62 on December 2, you can start your benefits as early as December. If you want your benefits to start in December, you can apply in August.

What are the benefits of retiring at 62?

If you claim Social Security at age 62, rather than wait until your full retirement age (FRA), you can expect up to a 30% reduction in monthly benefits. For every year you delay claiming Social Security past your FRA up to age 70, you get an 8% increase in your benefit.

Is it smart to take SS at 62?

The decision of when to take Social Security is highly dependent on your circumstances. You can start taking it as early as age 62 (or earlier if you are a survivor of another Social Security claimant or on disability), wait until you’ve reached full retirement age or even until age 70.

Is it best to take Social Security at 62 or wait until 66?

Social Security payments are reduced if you claim them before your full retirement age, which is typically age 66 or 67, depending on your birth year. If you sign up at age 62, you will get 25% smaller Social Security payments if your full retirement age is 66 and 30% lower payments if your full retirement age is 67.

Is it better to collect Social Security at 62 or 66?

If you do claim at 62, your payout will be 25 percent less than if you waited for what the Social Security Administration calls your full retirement age, which is 66 or 67 depending on the year you were born. The general rule of thumb is to wait as long as you can.

Should I retire early at age 62?

Claiming Social Security retirement benefits at the earliest age — 62 — is a big temptation for many aspiring retirees. Deciding to take benefits that early is only advantageous for limited situations, according to financial advisors. You generally want to hold off as long as you can up until age 70 to let your benefits grow as much as possible.

What age is considered early for retirement?

Social Security Early Retirement Age. The Social Security Administration defines early retirement as age 62. If you begin taking Social Security benefits at age 62, you will receive a reduced benefit.