Why I'm Taking Social Security at 62: Debunking the Wait Until 70 Argument

I'm Tyler, I'm a former financial advisor and portfolio manager, and now I make financial content for free, so you don't have to pay for it.

1. The Monthly Payment Misconception

By taking it at 62, I'd get about 30% less than waiting until 70. But just like when negotiating monthly payments at a car dealership, don’t let those amounts convince you that you're making the right decision. Focus on the bigger picture.

2. Extra Checks

Taking Social Security at 62 grants you an extra five years of checks. That’s money in your pocket sooner.

3. The Break-Even Point

The break-even point—the age at which you would receive more money overall by taking Social Security at 70 rather than 62—averages around 80 years old.

4. Consider Life Expectancy

If you look up the life expectancy statistics, you may find that average males at 65 are expected to live until age 82 and average females until age 85. Gambling on living just to hit that break-even point is statistically a bad bet.

5. The Working While Claiming Pitfall

For those still working and concerned about claiming early, it's important to note that if you're under full retirement age and earn over $23,400 in 2025, your Social Security will withhold $1 for every $2 over that limit. However, you get that money back once you hit full retirement age, and your benefits are recalculated. This crucial piece of information isn’t often shared at seminars.

Conclusion

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