Many people reaching their late 50’s that are tired of their career tell me they are planning on taking social security at the earliest possible age (62). The reasoning they commonly tell me is, “I want to spend the money now and who knows how long I’ll live.”
Only if they ask for advice, I tell them, “That is a colossal financial error. You have paid into this program your entire working career and now you are going to choose to settle for less than 50% of what you are entitled to each month?” Before I start listing all of the reasons why they should wait, I explain, “Social security benefits are very complicated. It is most likely that you can increase your monthly payment by 75% to 125% by mapping out the best strategy. You need to understand how to benefit from “file and suspend”, “restricted application for spousal benefits”, and many other tactics (particularly if you are married) before you make a move that permanently reduces your social security benefits.”
For most retirees, income from social security is their largest income source and greatest asset. Do not elect any benefits until you have met with an expert in social security income planning to maximize your benefits and retirement lifestyle. Remember that there are hundreds of ways to claim social security but SSA employees are legally prohibited from provided any advice.