Understanding Social Security Benefits at Age 62: What You Need to Know
Grasping Social Security benefits can greatly influence your retirement plans. The option to start collecting benefits as early as age 62 is tempting. Analyzing both immediate needs and future financial goals is key to this decision. Let’s clarify the details and offer insights into how claiming benefits at this age might affect your finances. The Basics of Social Security Social Security forms a cornerstone in retirement plans for many. It provides a reliable income to retired workers who’ve contributed through payroll taxes. To qualify, you typically need ten years (or 40 quarters) of work with Social Security tax contributions. Early Retirement vs. Full Retirement You can start receiving benefits at 62, according to the Social Security Administration (SSA). However, starting at this age reduces your monthly amount compared to waiting until full retirement age (FRA). Full retirement age varies by birth year: Born between 1943 and 1954: full retirement age