No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, May 9, 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
1 month 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
California to Give Newborns Free Diapers. What It Means for Families

California to Give Newborns Free Diapers. What It Means for Families

by TheAdviserMagazine
May 8, 2026
0

Gov. Gavin Newsom announced that newborn babies in California will start receiving free diapers as part of a new “first-in-the-nation”...

edit post
Micron surges nearly 38% on week as memory chip rally goes parabolic

Micron surges nearly 38% on week as memory chip rally goes parabolic

by TheAdviserMagazine
May 8, 2026
0

The Micron Technology offices in San Jose, California, Dec. 16, 2025.David Paul Morris | Bloomberg | Getty ImagesMicron Technology shares...

edit post
Anthrophic’s Mythos: Experts warn cyber threat was already here

Anthrophic’s Mythos: Experts warn cyber threat was already here

by TheAdviserMagazine
May 8, 2026
0

Global banks, tech giants and governments were sent scrambling last month to contain the risks posed by Mythos, the Anthropic...

edit post
The AI Race is Creating New Empires

The AI Race is Creating New Empires

by TheAdviserMagazine
May 8, 2026
0

Sam Altman is sitting in a courtroom waiting to defend OpenAI’s future. Meanwhile, reports recently surfaced that the company has...

edit post
ANI Pharmaceuticals Q1 2026 EPS Beats Estimates; Revenue Up 20%

ANI Pharmaceuticals Q1 2026 EPS Beats Estimates; Revenue Up 20%

by TheAdviserMagazine
May 8, 2026
0

AlphaStreet Newsdesk powered by AlphaStreet Intelligence Related Coverage Transcript ANI Pharmaceuticals, Inc (ANIP) Q1 2026 Earnings Call Transcript May 8,...

edit post
Coinbase Solidifying Position as Crypto Powerhouse

Coinbase Solidifying Position as Crypto Powerhouse

by TheAdviserMagazine
May 8, 2026
0

Every disruptive technology follows a similar trajectory which is often described using the Gartner Hype Cycle. The “peak of inflated...

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
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
Florida Warning: With Senior SNAP Benefits Averaging 8/Month, Thousands Risk Losing Assistance in 2026

Florida Warning: With Senior SNAP Benefits Averaging $188/Month, Thousands Risk Losing Assistance in 2026

April 27, 2026
edit post
Minnesota Wealth Tax | Intangible Personal Property Tax

Minnesota Wealth Tax | Intangible Personal Property Tax

May 6, 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
Exclusive: America’s largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth

Exclusive: America’s largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth

April 29, 2026
edit post
NYC Mayor Mamdani knocked Ken Griffin in pied-a-terre tax promo. His firm calls the move ‘shameful’

NYC Mayor Mamdani knocked Ken Griffin in pied-a-terre tax promo. His firm calls the move ‘shameful’

April 23, 2026
edit post
&Partners picks up B team from Wells Fargo

&Partners picks up $1B team from Wells Fargo

0
edit post
Corn Comes Back to Close Near Unchanged

Corn Comes Back to Close Near Unchanged

0
edit post
Micron surges nearly 38% on week as memory chip rally goes parabolic

Micron surges nearly 38% on week as memory chip rally goes parabolic

0
edit post
Sebi moves to curb misuse of exchange data with new 30-day rule

Sebi moves to curb misuse of exchange data with new 30-day rule

0
edit post
These Jobs Can Pay 0 an Hour (or More) Without a Degree

These Jobs Can Pay $100 an Hour (or More) Without a Degree

0
edit post
Capital Theory and Liberty | Mises Institute

Capital Theory and Liberty | Mises Institute

0
edit post
China unveils LineShine supercomputer, aims to surpass US’s El Capitan

China unveils LineShine supercomputer, aims to surpass US’s El Capitan

May 8, 2026
edit post
Sebi moves to curb misuse of exchange data with new 30-day rule

Sebi moves to curb misuse of exchange data with new 30-day rule

May 8, 2026
edit post
TDS targets 200,000-250,000 new fiber addresses in 2026 while proposing to acquire remaining Array shares (NYSE:TDS)

TDS targets 200,000-250,000 new fiber addresses in 2026 while proposing to acquire remaining Array shares (NYSE:TDS)

May 8, 2026
edit post
California to Give Newborns Free Diapers. What It Means for Families

California to Give Newborns Free Diapers. What It Means for Families

May 8, 2026
edit post
COLA Increases Aren’t Keeping Up With What Seniors Actually Spend

COLA Increases Aren’t Keeping Up With What Seniors Actually Spend

May 8, 2026
edit post
Ethereum Has Surpassed Bitcoin By 320% In This Major Metric, Is Price Next?

Ethereum Has Surpassed Bitcoin By 320% In This Major Metric, Is Price Next?

May 8, 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

  • China unveils LineShine supercomputer, aims to surpass US’s El Capitan
  • Sebi moves to curb misuse of exchange data with new 30-day rule
  • TDS targets 200,000-250,000 new fiber addresses in 2026 while proposing to acquire remaining Array shares (NYSE:TDS)
  • 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.