This video discusses why more people file for Social Security at 62 than at any other age. It covers several very good reasons (and one very bad reason) for this decision.
Importantly, the video crushes some of the myths as well as highlights some blind spots that many retirees have when deciding when to take Social Security retirement benefits.
DATA DISCUSSED IN THIS VIDEO
Should You Take Your Social Security at Age 62 and Invest it?
Congressional Research Service, Social Security Retirement Age
Federal Trade Commission, Consumer Debt Advocacy Webpage
00:00 Introduction
00:47 Congressional Research Service Report – The Social Security Retirement Age
01:26 Why Do 3X More People File for Social SEcurity at Age 62 than at Age 70
02:16 Reason #1 for Filing for Social Security at Age 62
03:11 Social Security as a “Defined Benefit Plan”
03:37 Social Security as an “Insurance Policy”
04:07 The Social Security “Experiment” from 2015
04:59 Reason #2 For Filing for Social Security at Age 62
06:26 Reason #3 For Filing for Social Security at Age 62
07:25 Reason #4 For Filing for Social Security at Age 62
14:41 Reason #5 For Filing for Social Security at Age 62
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider….(read more)
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For many individuals, the age of 62 is a significant milestone – it’s the age at which they become eligible to file for Social Security benefits. While the full retirement age for Social Security is currently 66 or 67, depending on the year of birth, many people choose to start collecting their benefits as soon as they are eligible. In fact, about one-third of Americans file for Social Security at age 62, compared to just 7% who wait until the full retirement age.
So why do most people choose to file for Social Security at age 62, and are they making the correct decision?
One of the primary reasons that individuals file for Social Security at age 62 is due to financial necessity. Many people may no longer be able to work or may not have adequate savings to support themselves in retirement. For these individuals, Social Security benefits may be their primary source of income, and they file for benefits as soon as they are eligible to ensure they can cover their living expenses.
Another reason that many individuals choose to file for Social Security at age 62 is due to concerns about the long-term solvency of the program. There is a widespread perception that Social Security may not be available in the future, and individuals may choose to start collecting benefits as soon as possible to ensure they can access the benefits they have paid into the system.
However, despite these valid concerns, there are some drawbacks to filing for Social Security at age 62. Filing early will result in a reduced monthly benefit, as benefits are reduced by a certain percentage for each month before full retirement age. Additionally, individuals who continue to work while receiving Social Security may be subject to the earnings limit, which can further reduce their benefits.
Ultimately, whether filing for Social Security at age 62 is the correct decision depends on an individual’s unique financial situation and retirement goals. While filing early may be necessary for some individuals, others may benefit from waiting until full retirement age or even delaying benefits past that point to maximize their monthly payments.
Before making the decision to file for Social Security at age 62, individuals should carefully consider their financial needs, potential sources of income in retirement, and the long-term impact of filing early on their benefits. Consulting with a financial advisor or retirement planner can help individuals make an informed decision that aligns with their overall retirement strategy.
In conclusion, while many people choose to file for Social Security at age 62 out of financial necessity or concerns about the program’s future, it’s important to carefully weigh the decision and understand the potential impact on future benefits. Making an informed decision about when to file for Social Security can help individuals maximize their retirement income and ensure financial security in their later years.
The grocery stores have so much unhealthy foods to kill the citizens slowly so they don’t make it to retirement age. Be smart and eat healthy now.
Even if you wait till 70, my payments would be approx 2,300 a month. Still chicken feed and worked to death
You can always work part time if able. When you hit full retirement age you can work as many hours you want without penalty. Enjoy life. What are you going to do if you make it to 70? Hope you’re in great health
I took mine at 62 I’m now 72 . No regrets. Tomorrow is promised to no one. Saw too many people die before they ever got a penny of SS back .
So you don't like your job. Or you do. Even if you like your job, or don't hate it, maybe you want to do something else other than work to the last day you are alive or healthy. You might like, or need to do something else even more. For example, no matter how much you like your job, you might be more needed to help raise your grandkids for your kids—who are hard at work, husband & wife, trying to make ends meet today—and they don't want their kids being raised by strangers in a woke daycare center. A grandparent that likes his job more than his grandkids would be pretty pathetic.
It’s not that easy to switch jobs at 62!
They should allow you to work less or work for less at 62. And receive a partial SS payment.
Most people retire at 62 because labor intensive jobs are difficult for a lot of people at that age. Or their job is to stressful.
I'm 63 and 1/2 now and thinking about taking SS now. If I wait until 67 FRA, I lose out on about $60,000 of benefits, so my thinking is that it is worth the 25% reduction to take it now.
I have enough money I'm retiring at 59. Being a FERS retiree, I'll receive SS supplement until 62. I'm seriously thinking about filing at 62 and investing in farm and ranch real estate. Real estate as by far the safest and most lucrative investment I have been involved with.
I like how he claims monetary investment is a risk, but every year one or two times they tell us that they may not even be able to send out Social Security checks if congress can't BORROW more money to do so for this "solvent" program. Dude, wake up and smell the coffee. Put your money in gold if nothing else. You'd have to be crazy to think gold will go down much, or at least much for very long. You going to trust blithering idiot politicians more than a metal that has been worth money for thousands of years? Don't say I didn't warn you.
If you have other money saved up? Yes. If you don't like your job? Yes. End of discussion.
I did the math and for me if I wait until I’m 65 to take social security, instead of taking it at 63, when I turn 80 I would have received $4000 more. I could make that up in one year just working a seasonal job. It’s not worth working two more years of shift work.
One aspect not mentioned is political risk. If politicians change Social Security between when you reach age 62, and when you reach age 70, the amounts might be reduced, or it might be 71 or 72 to get full benefits. It's easier politically to change the rules for people who haven't started taking Social Security, than those who have. (And Social Security famously is approaching a time when it'll only have money to pay 70% of benefits, so politicians will be looking for everywhere to reduce that's least politically costly.) So comparing based on current rules, is a bit wishful. Starting taking Social Security before it changes (whatever that change is…an even later full retirement age, reduced starting benefits, it's all been discussed) may lock in the current, and waiting probably won't.
I have health problems while also having my position at work being phased out. Where will I get another job so I can retire later?
Lol..the govt will push that you claim SS at 67 or FRA, I'm diabetic and started collecting at 62. I now focus on my health. I do about 25k steps a day, ride my bike about 15 miles a day.
I would tell people that my sole purpose when I got over 60 was to be able to live long enough to become a burden to society. I had a good career and earned a good living, and if it wasn't for having to deal with management I would be still working. I did the math and found the best time would be by 64. I learned that without a plan retirement can be difficult because by the time you're in your 60's everything you worked so hard for you either have, or you'll never have so why worry about it. Also, at this time in life we become creatures of habit so reinventing yourself is not all that easy. The most important thing to remember is there is NO WAY social security will provide you with all of your necessary living expenses. So, plan ahead.
At 64 I am right on track to retire comfortably in only 36 more years. Doing good!
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
One reason not mentioned is that SS has a benefit for minor children of retirement age parents. If you’re an old Dad and still have children under the age of 18 when you turn 62, SS will send your kids a check up to half the parents FRA benefit every month until they graduate high school. That could be enough to pay for college or put a down payment on a house.
There’s a reason this guy’s an accountant.
I am 60 next year and planning to work a full time position until 70. I have a small business on the side and it will be my part time gig after 70.
I don't want to retire, and can't afford to do it early any way. I want to just drop dead after living a full and vital life.
I don't want to sit around waiting to die, watching daytime TV and shuffling 10 feet a day in a studio apartment or worse.
Being busy and active increases your health, so you can live your best life as healthy and as long as possible. That's what I want, for me. Might not appeal to you. To each, their own.
No matter what age you start, the breakeven point is around age 79. I'd rather have more money sooner while i can enjoy it rather than waiting to get more in my 80s.
If your a government working parasite its great, If your a private sector working shlep, your pretty much screwed. Thats America. Winners and losers.
So many posters discuss only the math formula of collecting SSI without factoring ones "QTL" Quality Time Left. When you appropriately reconcile both the Amount plus QTL that is the correct way to approach the problem.