You can start receiving Social Security as soon as you turn 62 years old, but you won’t get the full amount allotted to you if you do. You’ll have to wait until you reach the full retirement age to get the maximum benefit. Depending on the year you were born, this means you’ll need to be between the ages of 66 and 67.
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For every month that you withdraw from Social Security before reaching the full retirement age, your benefits will be lowered by a certain percentage. If you’re relying on Social Security as your primary source of income in retirement, this can add up quickly — and lead to financial strain later.
But some people might be better off taking Social Security as soon as it’s available. GOBankingRates spoke with two Social Security experts, Kevin Thompson and Greg Corneille, about who should receive benefits sooner. Here’s what they said.
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You Have a Lower Life Expectancy or Poor Health
As of 2021, which is the most recent data available, the average life expectancy for males was 73.2 years. and 79.1 years for females. But if you have a lower life expectancy or are in very poor health and don’t expect to live as long, you might want to start collecting benefits as soon as you can.
That way, you’ll get the most benefit possible when you need it most — which is right now.
“If you are in bad health, the chances of you breaking even in your Social Security benefit is very low,” said Kevin Thompson, CFP, RICP, Founder and CEO of 9i Capital Group LLC. “If you start claiming at 62, your breakeven age lies somewhere between 76-77 years of age. If you are in bad health, you may need to consider taking it at 62 to maximize the benefit.”
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There’s a 5+ Year Difference Between You and Your Spouse
If you’re married and either you or your spouse is eligible for the maximum benefit amount, you might want to consider taking Social Security benefits early.
“A spouse that is much younger than the other spouse may benefit because that allows for the older spouse to claim at age 70,” Thompson said. “That added benefit will then fall back to the surviving spouse, although reduced slightly due to the early reduction of benefit. Still, the inheriting spouse benefited from several additional years of claiming on their own benefit versus forgoing that amount altogether.”
Even if both you and your spouse are still alive, the older spouse could start collecting benefits early to supplement the household’s cash flow until the other spouse also turns 70.
You Can’t Afford the Cost of Living Otherwise
If you simply can’t afford the cost of living without collecting Social Security, you might want to consider taking it at the age of 62 — or at least before the full retirement age. Your benefits amount will be reduced, but in dire cases, less money is better than nothing.
“Some people just need the money and can’t afford to delay,” Thompson said. “If you are in that camp, well, it will behoove you to take the money as soon as you can.”
If possible, see if you can delay taking Social Security by even a few months or a year or so. To do this, you might need to get creative with your finances, make a tighter budget, relocate to somewhere less expensive, or take advantage of community or government resources. All of these things can help keep you afloat until you can take a higher benefits amount.
You’re the Parent of an Adult Child With Special Needs or a Disability
Another reason why taking Social Security early might make more sense for you is if you’re the parent of an adult child with special needs who qualifies for Supplemental Security Income.
“Parents of adult special needs children receiving Supplemental Security Income face unique considerations when planning their Social Security benefits,” said Greg Corneille, certified financial planner and founder at Choice Wealth Management. “Starting Social Security at age 62 could offer a higher overall benefit to the household, particularly if the adult child could begin receiving Social Security Disability Income based on the parent’s work record once they start receiving benefits.”
Collecting your benefits early could be a highly strategic decision, Corneille continued.
“[It] can provide vital financial support for families navigating the complexities of caring for a loved one with special needs.”
You can learn more about Supplemental Security Income and who qualifies on the official SSA website.
You Believe the System’s Going To Fail
People have been discussing the Social Security system and its long-term viability for decades now. Many individuals believe it’s going to fail before they reach the point where they can start collecting benefits — and long before they reach the full retirement age.
Whether this is true or not, receiving your benefits earlier could give you some much-needed peace of mind in your later years.
“If you truly believe the Social Security system is set to fail, you may need to take it sooner rather than later if that is an opinion no one can shake you from,” Thompson said.
Bottom Line
Ultimately, your financial situation is a deeply personal matter, as are matters of life expectancy and health. Regardless of your situation, remember that the later you wait to collect Social Security, the more money you’ll receive. Early withdrawal will permanently lower your benefits amount but, depending on your situation, it might be worth it.
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This article originally appeared on GOBankingRates.com: I’m a Social Security Expert: These 5 Types of People Should Take Social Security at 62