Conventional wisdom says to delay Social Security benefits as long as possible—but for some, starting at age 62 can be a strategic move. Here are three compelling reasons why claiming early might make more sense than you think.
Most financial advisors recommend waiting until your full retirement age—or even age 70—before tapping into Social Security. And it’s true: the longer you wait, the bigger your monthly check. But that doesn’t mean claiming early is always the wrong choice. In fact, under certain circumstances, starting benefits at age 62 could be a financially sound decision.
Let’s break down why someone might choose to collect benefits early, even knowing they’ll receive less each month.
1. You Need the Money Now
Sometimes, life doesn’t wait for full retirement age. Whether due to unexpected job loss, medical issues, or lack of other income sources, you might simply need the financial support Social Security provides—right now. If continuing to work isn’t feasible, and your savings or assets are limited, claiming early could help you avoid debt, housing insecurity, or worse.
While it’s true that claiming at 62 can reduce your monthly benefit by up to 30%, it’s still better than exhausting your emergency funds or going without essentials.
2. You Can Put the Money to Work
Even if you’re not in urgent need of income, there’s a strategy behind claiming early: reinvesting the money elsewhere. With interest rates now back to more attractive levels, many savings accounts, CDs, and money market funds offer returns that rival—or exceed—the implicit growth rate you’d get from waiting to claim Social Security.
If you’re financially disciplined and confident in your investment choices, putting that early money into reliable, low-risk instruments could potentially outpace the long-term value of waiting. Just be honest with yourself: Will you truly invest that money? Or might it be too tempting to spend?
3. You’re Concerned About Future Cuts to Social Security
Social Security’s long-term solvency is a growing concern. Unless lawmakers intervene, the program could face benefit reductions as early as the 2030s. While no one can predict the future, it’s understandable to want to collect full benefits while they’re still guaranteed.
By starting earlier, you may be able to “lock in” several years of payments before any potential changes are enacted—especially if you’re skeptical about future reforms or worried about rising political uncertainty.
Bonus: You Can Still Work While Claiming Early
Many people don’t realize that it’s possible to work and collect Social Security at the same time—even if you start at 62. While earning too much may temporarily reduce your monthly benefit, those withheld amounts aren’t gone forever. Once you reach full retirement age, the SSA will recalculate your benefit and increase it to account for the reduction, essentially giving you credit for working while receiving benefits.
Final Thoughts: It’s Not One-Size-Fits-All
Choosing when to claim Social Security is a deeply personal decision. For many, sticking with a well-crafted retirement plan and waiting until full retirement age—or later—will offer the greatest lifetime value. But for others, early claiming can be a valid and even strategic move.
If you’re on the fence, consider running the numbers and talking with a financial advisor. Sometimes the best plan is the one that balances flexibility, financial security, and peace of mind.