Sun Dec 08 2024, by Tyler Gardner

Why I'm Taking My Social Security at 62: A Solid Case

Here is yet another reason why I will be taking my Social Security at 62, and I double dog dare you to challenge me on this one. I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free to help you make educated decisions.

1. Expected Lifespan

I looked up when I'm going to die, and based on my health and family history, I estimate I’ll be around until about 85 years old.

2. Sacrificing Higher Benefits

Now, as many of you have pointed out, by taking it at 62, I'd sacrifice higher monthly benefits down the road. Got it.

3. Compound Growth Considerations

However, by taking it at 67 or 70, I’d also sacrifice 5 to 10 years of compound growth related to those smaller monthly benefits. There’s a reason Einstein called compound interest the eighth wonder of the world.

4. Investment Projections

By investing my benefits in a basic low-cost index fund at age 62, assuming a 7% real rate of return, I’m projected to wind up with about $1.6 million by age 85. Conversely, if I wait to take benefits until 67, I’d wind up with only about $1.49 million. If I wait until 70, it drops to $1.26 million.

5. Lifetime Benefits

If you're waiting to take your Social Security because someone told you that you'll get higher monthly benefits someday, remember that those benefits might ultimately be much lower over your lifetime.

So I’ll ask again, who’s coming with me?

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