Is it smart to take SS at 62?

Deciding whether to take Social Security at 62 involves weighing immediate cash flow against permanently reduced monthly payments, with the best choice depending on your health, financial needs, other income, and life expectancy; taking it early gives you more checks but smaller ones (up to 30% less), while waiting (up to age 70) means larger checks, providing a longevity hedge, but you'll receive fewer checks overall, making a break-even analysis crucial.

What are the advantages of taking Social Security at age 62?

Crystal Edwards: The advantage of taking retirement benefits early is that you start to collect the money that you've been paying over to the government monthly since you started working. The downside to that, however, is that it causes a permanent reduction in your Social Security retirement benefit.

What does Suze Orman say about taking Social Security at 62?

Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."

What does Dave Ramsey say about drawing Social Security at 62?

Claiming Social Security at 62 can be risky, because if you don't have a lot of savings to supplement your benefits, you could end up short on income.

Is it a mistake to take Social Security at 62?

The argument is simple. Delaying claiming Social Security until age 70 maximizes a retiree's monthly payout by 80% compared to claiming at 62. A new study challenges that conventional wisdom, suggesting that for the vast majority of households, claiming benefits at age 62 is the rational financial choice.

4 Reasons you should take Social Security at 62

What is the smartest age to collect Social Security?

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

How to get $3000 a month of Social Security at age 62?

Only workers who consistently earn at or above the Social Security wage base limit for 35 years and strategically delay their benefits can approach this level. Key Requirements to Reach $3,000 Monthly: Maximum earnings history – Earn at or above the wage base limit ($160,200 in 2024) for 35+ years.

What is the $1000 a month rule for retirement?

According to this rule, you need to have approximately $240,000 to $300,000 saved for every $1,000 of monthly income you want in retirement, assuming you have a balanced mix of investments and safe withdrawal strategies.

What does Warren Buffett say about Social Security?

Buffett suggests a slight boost in Social Security payroll taxes, saying even a modest hike would generate additional funds over time. In addition, a small tax hike would help secure the program's financial stability without unfairly burdening workers or employers.

What's the average Social Security payout at age 62?

According to the SSA's Office of the Actuary, retired-worker beneficiaries who were 62 years old in December 2023 received an average check of $1,298.26.

How much money will I lose if I retire at 62 instead of 65?

If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent.

What is one of the biggest mistakes people make regarding Social Security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.

How much do you have to make to get $3,000 a month in Social Security?

Earnings of just $5,703 per month, or less than $68,500 per year, would suffice to get you to the point at which claiming Social Security at 70 would pay you that $3,000 per month amount.

What are common retirement mistakes?

Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement. Those who have worked for many years need to realize that dining out, clothing and entertainment expenses should be reduced because they are no longer earning the same amount of money as they were while working.

Can I draw Social Security at 62 and still work full time after?

You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.

What did Dave Ramsey say about Social Security?

Be the CEO of Your Own Retirement

If you can't rely on Social Security income in retirement the way your parents or grandparents did, what should you do? According to Ramsey, you need to become “the CEO of your retirement.” In other words, you must take charge of your retirement planning as early as possible.

Does Oprah Winfrey collect Social Security?

Whether Oprah actually collects Social Security is unknown since she hasn't made that information public. But if she does, her check wouldn't be dramatically larger than what high-earning professionals receive. The system caps out at around $5,000 per month regardless of how wealthy you are.

Is there a market crash coming in 2026?

The Stock Market Has a 10% Chance of a 30% Crash in 2026. Here's What Could Cause It. Options trading indicates a 10% chance of a 30% stock market drop in 2026, according to TS Lombard's Steven Blitz. Deutsche Bank's 2026 Global Markets Survey shows 57% of respondents view a tech bubble bursting as the top risk.

Can I live off $5000 a month in retirement?

To retire comfortably, many retirees need between $60,000 and $100,000 annually, or $5,000 to $8,300 per month. This varies based on personal financial needs and expenses.

How long will $500,000 last you in retirement?

Yes, retiring comfortably with $500,000 is achievable. This amount can support an annual withdrawal of up to $34,000, covering a 25-year period from age 60 to 85. If your lifestyle can be maintained at $30,000 per year or about $2,500 per month, then $500,000 should be sufficient for a secure retirement.

Who qualifies for an extra $144 added to their Social Security?

Who qualifies for extra $144 added to their Social Security depends on specific federal benefit programs and state supplemental payments. This additional monthly payment typically comes through Supplemental Security Income (SSI) state supplements or special Social Security Administration programs.

How many people have $500,000 in their retirement account?

Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal.

What is a good monthly amount to retire on?

Average individual retirement income: $60,000/year or $5,000/month. Median individual retirement income: $47,000/year or $3,900/month. Average retirement income for couples: $100,000/year or $8,300/month. Average monthly Social Security benefit: $1,976/month (as of January 2025) [2]