Is It a Bad Idea to Take Social Security Early? (Age 62)
One of the most common questions we get from clients approaching retirement is:
“Now that I’ve reached age 62, should I start taking Social Security—or should I wait?”
Like most financial decisions, the answer isn’t simple. It depends on your health, life expectancy, lifestyle, and overall financial plan. Let’s walk through the key factors that can help you make the best decision for your situation.
Health and Longevity: The Personal Side of the Equation
Your current health is one of the most important considerations. If you’re facing health issues or have a family history of shorter life expectancy, taking Social Security early may make sense. On the other hand, if you’re in excellent health and have a history of longevity in your family, delaying benefits—possibly all the way to age 70—could significantly increase your total lifetime benefit.
This decision goes beyond spreadsheets. It’s about making a choice that aligns with your personal circumstances and your vision for retirement.
What Kind of Retirement Lifestyle Do You Want?
Another consideration is your desired lifestyle. If you plan to retire early, do you have enough saved to fund your lifestyle without relying on Social Security? If the answer is yes, delaying your benefit could pay off with a higher monthly income down the road.
For example, at age 62, someone like Colleen might receive $1,450 a month. But by waiting until her full retirement age of 67, she could receive $2,000 monthly. If she waits until 70, her benefit could grow to $2,560. That’s a 76% increase from her age 62 benefit. So the question becomes: Is it worth the wait?
Understanding the Financial Impact
Delaying Social Security past full retirement age increases your benefit by about 8% per year until age 70. That’s a powerful incentive—but only if it fits within your broader retirement plan. If you don’t have a clear plan in place, this is a great reason to start one.
But there’s more to the decision than just the monthly benefit amount.
Don’t Forget the Tax Implications
Social Security benefits can be taxable depending on your total income. If you’re a single filer with combined income over $25,000—or a married couple with more than $32,000—a portion of your benefits will likely be taxed.
Delaying Social Security could provide a valuable window of time to implement tax strategies like Roth conversions, especially if you have significant IRA or 401(k) assets. Proper planning here can make a big difference in your long-term tax liability.
So… Should You Take It at 62?
Yes, you can. But the better question is—should you?
There are pros and cons to every strategy, and your decision should be based on a personalized retirement income plan. For most people, waiting often results in greater long-term value—but it’s not the right move for everyone.
If you’re approaching this decision and want to run the numbers, assess your options, and make a fully informed choice, we’re here to help. At Sullivan Financial Partners, we build retirement income plans that include Social Security, tax strategy, investment income, and more.
Let’s walk through your plan together and help you retire with confidence.