When is the right time to start collecting Social Security? Many clients and listeners ask me if they should collect benefits as soon as they can at age 62. On this episode, I’m discussing five things you should consider before collecting Social Security to set you up for retirement success. 

You will want to hear this episode if you are interested in...

• Understanding key dates and ages for Social Security [1:53]
• Are you working? [3:40]
• Are you married? [6:53]
• How is your health? [8:05]
• Do you have dependent children? [9:44]
• Were you previously married? [10:43]

Mark your calendar

One of the biggest steps toward retirement that anyone can take is beginning to collect Social Security benefits. Many Americans can’t wait to start retirement and opt to receive benefits as soon as they turn 62 years old. This is the first key date in the process of Social Security collection. The second key date is when you reach your full retirement age. For those born in 1960 or later, the full retirement age is 67. Those born before that up to 1954 have their full retirement age reduced by two months. And the retirement age for anyone born before 1954 is 66.

The final key date for Social Security collection is your 70th birthday. If you wait to collect until age 70, you'll receive your highest possible Social Security benefit. This is due to an annual delayed 8% credit earned every year between your full retirement age and age 70. Those who start collecting Social Security at age 62 receive roughly 70% of their benefits, so waiting is usually in your best interest if possible.

For your careful consideration

The first thing you should consider before collecting Social Security at age 62 is your employment status. Those who decide to collect their benefits early and continue to work are subject to an earning limit. The SSA deducts $1 from your benefits for every $2 you earn over the limit. That’s not a lot of money to live on, seeing as the annual earning limit for 2022 is $21,240. If you wait to start collecting benefits until your full retirement age but remain employed, the annual earning limit jumps to $56,529.

You should also consider your marital status when deciding if collecting Social Security benefits is right for you. If you’re married and your spouse outlives you, they’re eligible to collect the higher of the two benefits. If you start collecting benefits at 62, you are deciding that you and your spouse will have a reduced benefit amount for the rest of your lives. Consider your options carefully and make the best decision for you and your family. Listen to this episode for more on collecting Social Security at age 62!

Resources Mentioned

• Open Social Security
• Social Security Intelligence 
• Get 25% off of my Retirement Readiness Review online course until June 1st with Promo Code: RETIRE25

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