3 Scenarios Where You May Not Regret Claiming Social Security at 62

There's a reason retirees are often told it's smart to hold off on claiming Social Security rather than filing at the earliest possible age of 62. If you wait until full retirement age, which is 67 for anyone born in 1960 or later, to file for Social Security, you'll get your monthly benefits without a reduction.

Better yet, if you delay Social Security past full retirement age, each year you wait will boost your monthly checks by 8% for the rest of your life. That incentive ends at 70, but you could potentially wind up with benefits that are 24% higher than your full retirement age benefit by waiting.

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On the other hand, if you claim Social Security at 62, your benefits will shrink by about 30% compared to waiting for full retirement age. That could lead to a financial shortfall throughout your senior years.

But that doesn't mean claiming Social Security at 62 is a move you're sure to regret. Here are three scenarios where you may end up more than happy with your decision.

1. You want to travel while you're still in good health

If you've spent decades working and saving, you may be eager to spend your retirement exploring the world and visiting family in different parts of the country. The challenge is that waiting until 67 or 70 to claim Social Security could mean postponing some of those plans.

Although delaying benefits can increase your monthly income, you can't assume you'll have the same health, energy, or desire to travel at 67 or 70 that you do at 62. And so claiming Social Security as early as possible could give you an additional source of income to help fund the retirement lifestyle you want today.

Of course, claiming benefits early comes with a trade-off. The resulting reduction in benefits could affect your finances for decades. But if you have a nice amount of savings and a realistic budget, prioritizing experiences while you're healthy enough to enjoy them may be a choice you appreciate for years to come.

2. You're concerned about your health

Delaying Social Security often pays off over time because you receive larger monthly checks that lead to a larger lifetime benefit. But that strategy depends on how long you live.

If you have a serious health condition or reason to believe your life expectancy may be shorter than average, you may not collect enough additional payments by waiting to make up for the benefits you gave up. Claiming at 62 could allow you to receive benefits sooner and use that income while you need it most.

Of course, predicting life expectancy is difficult, and a health diagnosis doesn't necessarily mean you'll have a short retirement. Some people live for many years despite significant medical conditions. But if you have reason to believe you won't have the longest retirement, an early Social Security claim could put more lifetime income in your pocket, despite the reduction in your benefits on a monthly basis.

3. You have a miserable job you're desperate to escape

Sometimes the decision to claim Social Security early isn't about travel or health. It may be about escaping a job that's making you unhappy.

Perhaps your work is physically demanding, your stress levels are surging, or you simply don't want to spend another five years doing work that bores you to tears or answering to a boss who can never be pleased. If you're 62 and financially prepared to retire, Social Security could help you leave the workforce sooner.

It's one thing to struggle through a job you can't stand in your 20s or 30s when you're paying your dues. And while it may not be as easy in your 40s or 50s, it may be something you have no choice but to power through. But by your early 60s, you've earned the right to escape a bad job if you've saved well and can afford reduced Social Security checks.

Claiming Social Security benefits at 62 clearly has consequences. But that doesn't mean you'll regret filing early. If you want to travel while you're healthy, have concerns about your life expectancy, or need to leave a bad work situation, claiming benefits at 62 may best align with your priorities, even if it results in smaller checks for the rest of your life.

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