Why Taking Social Security at 62 Might Be the Smartest Move for Some Retirees

If you’ve spent any time planning for retirement, you’ve probably heard the same advice over and over: wait as long as you can to claim Social Security. On paper, that seems like sound logic — for each year you delay past your full retirement age (FRA), your benefit grows by up to 8% until age 70, according to the Social Security Administration.
https://www.ssa.gov/benefits/retirement/planner/delayret.html

But real-world retirement decisions rarely fit neatly into “one-size-fits-all” math. For many retirees, claiming Social Security early — even at age 62 — can actually produce better lifetime outcomes or reduce financial risk.

Here’s why the “wait until 70” rule isn’t always the right answer.

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1. The “Breakeven” Age Isn’t the Whole Story

The basic math behind delaying benefits assumes that you’ll live long enough to make up for the years you didn’t collect checks. For example, someone whose full benefit at 67 is $2,000 might receive only $1,500 per month if they start at 62 — but $2,480 per month if they wait until 70.

Financial planners often calculate a breakeven age — the point at which cumulative delayed benefits exceed cumulative early benefits. For many people, that point falls around age 78–80.

The problem: not everyone lives long enough to reach that breakeven point. If you start benefits at 70 but pass away at 72, you’ve collected only two years of payments. Someone who started at 62 would have enjoyed a decade of checks — even at a reduced rate — resulting in far greater total lifetime income.

If you’re uncertain about longevity — or simply value having money in hand earlier — waiting may not be worth the gamble.

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2. The Opportunity Cost of Waiting

Delaying Social Security isn’t just about “giving up” income for a few years — it also means using your savings sooner to cover expenses while you wait.

If you retire at 62 but don’t claim benefits until 67 or 70, you may need to draw from your 401(k), IRA, or brokerage accounts in the meantime. That means pulling money out of investments that could otherwise keep growing.

This is the opportunity cost of delaying Social Security — the potential growth you lose by spending your savings earlier.

When you factor in a reasonable investment return — say 5% per year — the age at which delaying becomes advantageous moves dramatically higher. One analysis found that with a 5% return assumption, the breakeven age for delaying from 62 to 67 stretches to nearly 89 years. With an 8% return assumption, the breakeven point may never be reached within a typical lifespan.
https://moneywise.com/retirement/heres-why-you-ought-to-seriously-consider-taking-social-security-at-62-even-if-the-basic-math-suggests-otherwise

In short, the money you receive earlier can keep working for you.

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3. Tax and Medicare Implications

There’s also a tax-planning angle. Introducing Social Security income earlier can spread your taxable income more evenly across retirement years, potentially keeping you in lower marginal brackets and minimizing Medicare’s income-related monthly adjustment amount (IRMAA) surcharges.

Vanguard’s research notes that early claiming can reduce both tax drag and IRMAA exposure in some cases, particularly when coordinated with retirement account withdrawals.
https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/social-security-for-some-claiming-early-better.html

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4. Cash Flow, Certainty, and Peace of Mind

For many retirees, there’s enormous psychological value in having guaranteed income sooner. Early claiming provides stable cash flow and reduces the need to liquidate investments during market downturns.

If your health, family history, or financial needs suggest that a long delay carries more risk than reward, taking benefits at 62 can bring welcome peace of mind.

Behavioral economists have long noted that people tend to overvalue future gains and undervalue present stability. Having predictable income at 62 can ease stress and make retirement more enjoyable.

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Important Warning: Early Claiming and the Earnings Test

Before you rush to file for benefits at 62, it’s crucial to understand how earned income affects Social Security.

If you claim benefits before your full retirement age (FRA) and continue working, your benefits may be reduced or temporarily withheld under the Social Security Earnings Test.

For 2025, the rules are:

• You can earn up to $23,400 without affecting your benefits.
• If you earn more than that, Social Security will withhold $1 in benefits for every $2 you earn above the limit.
• In the calendar year you reach FRA, a higher threshold applies — $62,160 for 2025 — and the reduction is $1 for every $3 earned above that amount, up until the month you reach FRA.
• Once you reach your full retirement age, your benefits are no longer reduced, regardless of how much you earn.

However, these withheld benefits aren’t lost forever — they’re recalculated when you reach FRA to account for the months you didn’t receive payments.

Still, if you plan to keep working significantly while drawing Social Security before FRA, the reduction can be substantial or even eliminate your benefit entirely in the short term.

Learn more directly from the Social Security Administration:
https://www.ssa.gov/benefits/retirement/planner/whileworking.html

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What If Your Spouse Is Still Working?

Here’s a common question: What if my wife (or husband) keeps working and earns a high income — say, $100,000 per year — while I start taking Social Security at 62?

The good news: your spouse’s income does not directly reduce your Social Security benefit.

The Social Security Earnings Test only considers your own earned income — not your spouse’s.
If your wife earns $100,000 but you have retired and are not working, your benefits will not be reduced or withheld.

In short:
Your spouse’s wages don’t count against your benefit under the earnings test — only your own wages or self-employment income do.

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The Bottom Line

Delaying Social Security until 70 can make sense for those in excellent health with strong portfolios and longevity on their side. But for many retirees, the “early bird” approach delivers higher overall security and flexibility.

Claiming at 62 isn’t a mistake — it’s a strategic choice that can:

• Increase lifetime income if longevity is shorter than average,
• Preserve investment growth by reducing portfolio withdrawals,
• Mitigate tax and Medicare surcharges, and
• Provide psychological comfort through steady cash flow.

Just remember:

• If you’re still working, your own earnings can temporarily reduce your benefit.
• If your spouse is still working, her (or his) income can increase how much of your benefit is taxable.

Because every retiree’s situation is unique, the best decision often depends on your health, life expectancy, savings, and broader financial plan. Working with a qualified financial advisor can help you model different scenarios — not just the “simple math” — and find the claiming strategy that truly fits your goals.