Filing for Social Security at age 62 is tempting due to early access to funds; however, it results in a permanent reduction of monthly benefits, often by about 30% if your full retirement age is 67. Before making this choice, individuals should evaluate the income potential of their savings, such as IRAs and 401(k)s, rather than simply reviewing their total balances. Understanding how much annual income your savings can provide is key to determining whether claiming Social Security early is financially sound.
It's important to assess how much income your savings can provide annually before deciding to claim Social Security benefits at age 62, as claiming early permanently reduces benefits.
Claiming Social Security at age 62 can greatly reduce your monthly benefit. The amount you receive monthly will be approximately 30% less if you claim early.
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