For most of us, waiting to take your Social Security makes sense.  But here are 5 reasons to start your Social Security at 62.

Video: 5 Reasons to Start Your Social Security at 62

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5 Reasons to Start Your Social Security at 62

Last week we showed you one way you can evaluate your Social Security decision. The numbers will say you should wait to start your benefits. And the strategy can work for you, if you live long enough.
 
But it raises the question: Does it make sense to start your benefits early? Sometimes it does. And here are 5 reasons to start your Social Security benefits at age 62.

Early Retirement...

5 Reasons to Start Social Security at 62
Many Americans plan to work beyond age 65. For a large number, an early retirement isn’t a choice.   For those who retire early, they may not be able to afford to delay their Social Security.  
 
Most of us will rely on Social Security and savings for our retirement income.   For our savings to last, we need to watch the withdrawal rate.  Withdrawal rates above 4% increase the risk of running out of money.
 
If you retire early, pay attention to how not having Social Security will impact your savings.  If it increases your risk of running out of money, you may want to start your benefits.

Not Married

5 Reasons Social SEcurity
One of the biggest reasons to delay Social Security is to improve Spousal and Survivor benefits. 
 
If you’re not married, you don’t have to worry about it. 
 
The numbers may show waiting is beneficial.  But, not having a spouse may simplify your decision.  Your choice can become more about what you want to do and not necessarily about the numbers.

Waiting Works, If You Live Long Enough

When doing the math, waiting to take Social Security can be beneficial if you live long enough. 

For some, there may be known health issues which make reaching the breakeven point questionable. 

But you shouldn’t make this choice based solely on your health.  You also need to consider benefits for your spouse.  Waiting can improve both spousal and survivor benefits.

The System Has Problems, and Government is a Bigger Problem

5 Reasons to Start Social Security

Social Security faces some future financial issues.  If our elected leaders fail to act, future benefits could be cut by as much as 21%.  

And with the way things work in Washington DC today, fixing it might be a real challenge. 

You might lack faith in our elected officials to fix the problem.  If so,  you may want to start your benefits as early as possible.  This way you could get more before benefits are adjusted.

Be careful though.  It may get fixed.  And if you start your benefits, you have limited opportunities to change your mind.

You're More Fortunate Than Many

Start Social Security at 62

For some, Social Security benefits won’t really matter.  If you fit into this category, you may want to take your benefits early.

Social Security becomes bonus income to help you do the things you want to do.

It also keeps your income lower, which can reduce your taxes.  

Waiting Still Makes Sense, But...

Most of the time, it makes sense to delay Social Security.  But, there are some times when it can make sense to start your Social Security benefits early. For some, it may be a  necessity rather than choice. The important thing for you, take a few moments and look at the numbers. Make sure you are making a good decision for you and your family.

Financial Planning

Neal Watson is a Certified Financial Planner™ Professional and a Financial Advisor with Fleming Watson Financial Advisors  He typically works with people who are planning for retirement.  Fleming Watson is a Registered Investment Advisory firm located in Marietta Ohio.  Our firm primarily serves Marietta, Parkersburg, Williamstown, St. Marys, Belpre, Vienna and the surrounding communities in Washington and Noble Counties in Ohio and Wood and Pleasants county in West Virginia.

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