The age of 62 remains the most popular time to claim Social Security benefits — but are most people correct? Here are the pros and cons of cashing in early

When the idea of retirement was first introduced, most people weren’t expected to live to the ripe old age of 70.

And while the concept of life after labor has changed a great deal in the nearly 140 years since, for the last century or so, the ideal retirement age has often been regarded as 65.

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That being said, what’s ideal for one person might be less so for another. In the U.S., you can retire as early as 62 and start claiming your Social Security. And as of 2021, according to the Congressional Research Service, it’s the most popular age for newly retired beneficiaries. But is it right for you?

The choice between packing it in at 62 or waiting until 65 (or even 70) is complicated and personal, but here’s what you need to know when weighing your options.

Cons of claiming early

Surely after decades of working, you’re asking yourself, “Is 62 really early if the law permits it?” It is once you factor in the drop in long-term income. According to Fidelity Insurance, those who claim at 62 years old will see around a 30% reduction in monthly benefits compared to those who delay until full retirement age.

Depending on when you were born, full retirement age for 100% benefits lands at about 66 or 67. But if you hold out until age 70, your benefits come in even higher. In fact, you can receive an 8% boost for every year you wait.

Let’s say you were born in 1960. If you started your benefits in 2012 at age 62, your monthly income would be 30% lower compared to full retirement age. Instead of $1,000 per month you’d receive $700, the Social Security Administration explains.

But if that same person waits until full retirement age — 67 at present — they’ll get that whole $1,000; each year until 70 adds that extra 8%. Monthly, that’s $1,260 for an annual total of $15,120, compared to the $8,400 received at 62.

Read more: Here’s how much the average American 60-year-old holds in retirement savings — how does your nest egg compare?

Pros of claiming early

The above scenarios, of course, assume vigorous health and a longer lifespan. But if you or your spouse experiences a disability or severe health problem, early benefits would definitely help defray costs.

Then there’s the question of debt. An extra 8% a year may pale in comparison to the interest racked up by unsecured, high-interest credit card debt where you delayed the payoff. Thus entering retirement debt free must be weighed against any decision to defer benefits.

The wisdom of collecting Social Security early also depends on the type of work you do. Retiring early from a backbreaking assembly line position, for example, is a much different matter than sticking it out in a laid-back desk job. It can also provide a gentle offramp as you exit gradually from everyday work; the lost percentages might not hurt you so much if you’re still a part-time wage earner.

Never too early to consult an expert

Before you decide which path to follow, consider the wisdom of meeting with a financial adviser now.

What if you could invest your Social Security wisely and outpace inflation? Whatever their strategy, it’s their job as a fiduciary to keep your best interests top of mind.

And at the end of the day, remember: These folks are working towards a smart retirement, too.