Sat Nov 16 2024, by Tyler Gardner

Why Taking Social Security Benefits at 62 is a Smart Choice

Here is the number one reason I plan on taking my social security benefits at 62. And I dare you to challenge this reason. I'm Tyler, a former financial advisor and portfolio manager, and now I make financial content for free so you don't have to pay for it.

The Financial Breakdown

Number one, I logged into ssa.gov this morning and saw that if I start taking social security at 62, I'm currently projected to receive $2,120 a month. But if I wait until 70, I'd receive much more, $3,822 a month.

Crunching the Numbers

Number two, but here's where it gets interesting. I took about five minutes to actually add up the numbers myself, instead of listening to some ding-a-ling on social media tell me how to think. If I do wait to start taking social security until I'm 70, even though it will eventually be more money per month, those payments won't end up beating what I've been taking since 62 until I'm 81 years old.

Quality of Life Considerations

Number three, I've been told my entire life, as I'm sure you have too, to just save and save for this magical neverland called retirement. Now I'm being told by financial advisors that if we really want to live our golden years, we should wait until we're 81 years old to do it. But we'll have sacrificed almost a decade of supplemental income in our 60s when our minds were still sharp and our hips were still greased.

The Decision

Well, I'm actually tired of being told to defer life, and I plan to start taking advantage of as much as this life has to offer when I'm 62 years old. And I've just got one question for you, who's coming with me?

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