Many people retire at 62 because that’s the earliest you can collect Social Security retirement benefits. But just because you can claim monthly benefits at 62 doesn’t always mean you should. Social Security pays 100 percent of the benefit calculated from your lifetime earnings history if you claim it at full retirement age.
By filing at 62, or any time before you reach full retirement age, you forfeit a portion of your monthly benefit. If you were born in 1964 or later, for instance, filing at 62 could reduce your monthly payment by as much as 30 percent. AARP’s Social Security Benefits Calculator can provide more details on how filing early affects benefits.
Key takeaways If you retire at 62, you probably won’t be eligible for Medicare. Medicare for all but those with disabling chronic conditions begins at 65. One option to fill part of the gap is to use COBRA to keep your insurance. A health plan through the Affordable Care Act marketplace is widely available. Other options are available for a select few early retirees.
You can start collecting retirement benefits before FRA — the minimum age is 62 — but your monthly payment will be permanently reduced, by as much as 30 percent. You can also wait past FRA and reap Social Security's bonus for delaying benefits: an extra 8 percent a year until age 70, when you can claim your maximum benefit.
Collecting Social Security Benefits at 62 vs. 67 vs. 70 How to receive your highest monthly benefit, and when it makes sense to start collecting early By Phil Pruitt,
