No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Friday, May 29, 2026
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Markets

Taking Social Security at 62 Can Cost You. Here’s Why.

by TheAdviserMagazine
2 months ago
in Markets
Reading Time: 5 mins read
A A
Taking Social Security at 62 Can Cost You. Here’s Why.
Share on FacebookShare on TwitterShare on LInkedIn


Sixty-two is the most popular age for claiming Social Security. And that should surprise no one, because it’s the age the retirement benefit becomes available to most Americans. Hey: It’s money.

But is 62 the best age to claim Social Security?

You can find hundreds of articles on that question, and the answer isn’t obvious. If you take Social Security earlier, you get more checks. For every year you wait, up to age 70, the checks get larger.

Do the math, however, and you will see compelling evidence for waiting until age 70 to take Social Security.

The reason is simple human longevity: An average American retiree will live long enough to get the most money over their lifetime if they wait until 70 and claim the maximum monthly benefit. USA TODAY published an article in 2025 that explains the calculations.

One scholarly paper found that the typical retiree who claims before 70 loses $182,370 in potential Social Security income.

Nonetheless, more than 90% of Americans claim Social Security before age 70, and more than one in five take the benefit at 62.

Let’s take a closer look at some popular reasons for taking Social Security at 62. For a more personalized assessment, visit a Social Security optimizer, such as the one offered by T. Rowe Price.

You Need the Money

Social Security offers a monthly check until you die. If you’re 62, no longer working and have no other income, taking the benefit now might make sense.

“If their alternative is going into debt, then they might want to claim it early,” said Romina Boccia, director of budget and entitlement policy at the Cato Institute.

Remember, though, that you’re potentially leaving $182,370 on the table.

Experts suggest you consider other options. You could continue working a few more years. If you have significant retirement savings, you might be better off spending them now and drawing Social Security later.

“Nobody would say, ‘Draw [your savings] down to zero,’” said Monique Morrissey, a senior economist at the Economic Policy Institute. “But if you have a few hundred thousand dollars, you can live on that until 70.”

Laurence Kotlikoff, a Boston University economist and co-author of the scholarly paper cited above, is more adamant: He says you should “beg, borrow and steal” to avoid taking Social Security at 62.

You Don’t Expect to Live Long

When it comes to claiming Social Security, longevity matters.

If you are weighing whether to claim the benefit at 62 or 70, The Motley Fool calculates, the “break-even” point comes around age 80. Live longer than that, and you’re better off claiming at 70.

Many Americans are badly misinformed about human life expectancy. Retirees often assume they’ll die in their 70s, because the average American lives to about 78.

But life expectancy rises with age. By the time you are 62, you can expect to live into your 80s.

“People are much more likely to underestimate their remaining life expectancy than to overestimate it,” Morrissey said.

There are some Americans, however, who reach 62 knowing they will not reach 80. They may have a terminal illness, or a genetic predisposition “toward certain diseases that could cut their lifespan short,” Boccia said. “Then, the math could look very different to them.”

Social Security Is Running Out of Money

The solvency of Social Security is no trivial concern. Surveys suggest most American workers fear the promised benefits won’t be there when they retire.

Social Security faces a shortfall as soon as 2032. Without action from Congress, recipients could see a 28% reduction to their monthly checks.

Fear has driven many Americans to claim Social Security early. In a 2025 AARP survey, roughly one-quarter of Americans ages 62 to 66 said they had made a decision within the past year to claim Social Security early, or expected to do so.

“I think that’s the most common reason why people who could afford to wait take Social Security early,” Morrissey said.

But is it a good reason?

Social Security watchers widely predict Congress will find a way to make the program solvent, by collecting more taxes, tweaking the “full” retirement age for benefits, or borrowing funds, among other options. A recent paper proposed capping annual benefits at $100,000 for couples, drawing both praise and pillory.

But cutting Social Security for retirees would be “political suicide,” Morrissey said, for anyone who approved the cuts. Any benefit cuts, experts say, would more likely affect younger workers, those many years from retirement.

“I think it is very unlikely there will be any benefit cuts to people who are close to or in retirement,” said Robert Brokamp, a senior retirement adviser at The Motley Fool.

You Want to Claim Early and Invest the Money

As we said above, compelling math suggests most Americans will get the biggest return from Social Security if they wait until 70 to claim it.

But what if you took the smaller checks at 62 and invested the money yourself?

Before we answer that question, let’s revisit how the Social Security bonus system works.

For Americans born in 1960 or later, full retirement age for Social Security is 67. If you claim it then, you get your “full” benefit. Claim it earlier, and you get less money. The minimum benefit at age 62 is 30% smaller.

If you claim the benefit after 67, the check continues to get larger at a rate of 8% per year. The total Social Security “bonus,” between ages 62 and 70, boosts the monthly payment by about 76%, Kotlikoff calculates.

The question, then, is whether you can “beat” the bonus by taking your checks early and investing them.

We posed that question to experts. The short answer: Maybe. But it might not be worth the risk.

By one Motley Fool analysis, if you earned 5% a year on your Social Security dollars, you could be better off taking the benefit at 62, even with the smaller monthly checks. The potential advantage endures until around age 90: If you live longer than that, you’re still better off claiming the larger Social Security checks at 70.

Investing Social Security checks might make sense for someone who doesn’t need the money and hopes to pass it on to the kids, Brokamp said.

But the strategy has perils and pitfalls. Perhaps the biggest, economists say, is the risk you take when you invest your Social Security dollars in unpredictable financial markets.

“Almost all retirement experts believe you should have the core of your retirement savings in the most secure form possible,” Morrissey said. And few investments match the security of Social Security.

This article originally appeared on USA TODAY: Taking Social Security at 62 can cost you. Here’s why.

Reporting by Daniel de Visé, USA TODAY / USA TODAY

USA TODAY Network via Reuters Connect



Source link

Tags: CostHeresSecuritySocial
ShareTweetShare
Previous Post

Dalal Street Week Ahead: Avoid aggressive long positions; focus on capital preservation

Next Post

A Strategic Guide to Automated Incentives

Related Posts

edit post
Fed’s Bowman warns against hiking interest rates due to inflation spike

Fed’s Bowman warns against hiking interest rates due to inflation spike

by TheAdviserMagazine
May 29, 2026
0

Federal Reserve Governor Michelle Bowman on Friday cautioned against raising interest rates to address the current spike in prices.With inflation...

edit post
AI Just Broke One of Software’s Oldest Rules

AI Just Broke One of Software’s Oldest Rules

by TheAdviserMagazine
May 29, 2026
0

Software security has always worked a bit like medicine does. Doctors look for problems, diagnose what’s wrong and prescribe treatments...

edit post
Medtronic (MDT) Q4 2026 Preview: EPS Est. .55, Reports June 3

Medtronic (MDT) Q4 2026 Preview: EPS Est. $1.55, Reports June 3

by TheAdviserMagazine
May 29, 2026
0

AlphaStreet Newsdesk powered by AlphaStreet Intelligence Related Coverage MDT|EPS Est $1.55 (22 analysts)|Rev Est $9.61B|Reports 2026-06-03 Wall Street is looking...

edit post
SpaceX – How to Navigate the Hottest IPO of 2026

SpaceX – How to Navigate the Hottest IPO of 2026

by TheAdviserMagazine
May 29, 2026
0

The 250-page SpaceX S-1 filing document is finally available to the public and it’s best broken down into three sections...

edit post
How to Pay (Much) Less in Taxes as a Real Estate Investor (Rookie Reply)

How to Pay (Much) Less in Taxes as a Real Estate Investor (Rookie Reply)

by TheAdviserMagazine
May 29, 2026
0

Rental properties can give you cash flow, appreciation, and loan paydown from tenants. But tax benefits are often the unsung...

edit post
Easy, Free and Quick: 8 Ways to Stay Fit Over 60 With No Gym Required

Easy, Free and Quick: 8 Ways to Stay Fit Over 60 With No Gym Required

by TheAdviserMagazine
May 29, 2026
0

The Centers for Disease Control and Prevention recommends that adults 65 and older aim for about 2.5 hours of moderate...

Next Post
edit post
A Strategic Guide to Automated Incentives

A Strategic Guide to Automated Incentives

edit post
Today in Supreme Court History: March 28, 1955

Today in Supreme Court History: March 28, 1955

  • Trending
  • Comments
  • Latest
edit post
Supreme Court Delivers More Bad Redistricting News for Democrats

Supreme Court Delivers More Bad Redistricting News for Democrats

May 19, 2026
edit post
From Maine to Michigan, Democrats Are Making Communism Great Again

From Maine to Michigan, Democrats Are Making Communism Great Again

May 16, 2026
edit post
Gavin Newsom issues ‘final warning’ amid California’s dire housing crisis — what’s at stake for millions of residents

Gavin Newsom issues ‘final warning’ amid California’s dire housing crisis — what’s at stake for millions of residents

May 3, 2026
edit post
Minnesota Wealth Tax | Intangible Personal Property Tax

Minnesota Wealth Tax | Intangible Personal Property Tax

May 6, 2026
edit post
It’s Time To Talk About Massie

It’s Time To Talk About Massie

May 23, 2026
edit post
10 Cheapest High Dividend Stocks With P/E Ratios Under 10

10 Cheapest High Dividend Stocks With P/E Ratios Under 10

April 13, 2026
edit post
Fed’s Bowman warns against hiking interest rates due to inflation spike

Fed’s Bowman warns against hiking interest rates due to inflation spike

0
edit post
US stocks today: US stocks hits new closing highs on tech strength, Middle East deal hopes

US stocks today: US stocks hits new closing highs on tech strength, Middle East deal hopes

0
edit post
New Zealand confirms November rollout of graduate work visa

New Zealand confirms November rollout of graduate work visa

0
edit post
Top 13 Highest-Yielding MLPs Now

Top 13 Highest-Yielding MLPs Now

0
edit post
Market Talk – May 29, 2026

Market Talk – May 29, 2026

0
edit post
US Moves To Seize  Billion Crypto Assets From Iran Amid War

US Moves To Seize $1 Billion Crypto Assets From Iran Amid War

0
edit post
US Moves To Seize  Billion Crypto Assets From Iran Amid War

US Moves To Seize $1 Billion Crypto Assets From Iran Amid War

May 29, 2026
edit post
Market Talk – May 29, 2026

Market Talk – May 29, 2026

May 29, 2026
edit post
US stocks today: US stocks hits new closing highs on tech strength, Middle East deal hopes

US stocks today: US stocks hits new closing highs on tech strength, Middle East deal hopes

May 29, 2026
edit post
Friday File: Some Rebalancing, with a new Asset Class

Friday File: Some Rebalancing, with a new Asset Class

May 29, 2026
edit post
Asana was battered by the AI age. It’s hoping an acquisition helps pivot it to an agentic future.

Asana was battered by the AI age. It’s hoping an acquisition helps pivot it to an agentic future.

May 29, 2026
edit post
Top 13 Highest-Yielding MLPs Now

Top 13 Highest-Yielding MLPs Now

May 29, 2026
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • US Moves To Seize $1 Billion Crypto Assets From Iran Amid War
  • Market Talk – May 29, 2026
  • US stocks today: US stocks hits new closing highs on tech strength, Middle East deal hopes
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.