At age 62, people can begin claiming Social Security benefits. There are upsides and downsides to doing so. There are three things you need to know if you did this or are filing soon.
First, recognize your monthly benefit is less than what it would be if you waited until full retirement age (FRA) of 66 or 67. If your FRA is 67 and you sign up at 62, your payment will be reduced by about 30 percent.
Second, you need to consider your health status. If you enter retirement with significant health issues, it might be wise to sign up as soon as you can. Say you’re due a $1,600 monthly benefit at 67. By filing at 62, the payment may only be $1,120. But if you pass away at the relatively young age of 76, you will have gotten an extra $15,360 by filing early instead of waiting until 67.
A third consideration is whether you filed early while still employed. By doing so before reaching FRA, you risk having some benefits withheld if your earnings exceed a certain limit. Right now, that threshold is $18,960.
Council of Seniors Wants Congress To Act Now on Social Security Benefits
Social Security beneficiaries will appreciate getting the benefits they deserve – which is why Council of Seniors is working tirelessly to get Congress to pass The SAVE Benefits Act. The Social Security cost of living adjustment (COLA) hasn’t been what it should have been for a number of years. Passage of this new bill will reimburse the $581 that seniors have deserved all along.
Please sign our petition today to help us get one step closer to putting money back in seniors’ pockets.
Did you file for Social Security at 62? Leave us a comment and let us know.
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