When to Claim Social Security: The 62 vs. 67 Decision

Ah, the classic retirement conundrum that’s keeping 62-year-olds up at night: Should you grab those Social Security benefits now like they’re the last slice of pizza, or wait until 67 when the government super-sizes your monthly check?

Let’s face it – this decision about when to claim Social Security is harder than trying to fold a fitted sheet. Financial experts are split on this retirement planning dilemma, and for good reason. There’s no perfect answer for maximizing your benefits unless you happen to own a crystal ball that tells you exactly when you’ll kick the bucket. (If you do have such a ball, please contact me immediately – I have questions about next week’s lottery numbers.)

Here’s the deal: delay your Social Security benefits until 67, and you’ll get a bigger monthly check. It’s like waiting in line at an all-you-can-eat buffet – the longer you hold out, the more food they put out. Those who practice this financial patience earn what experts call a “substantial risk-free return.” I call it “the tortoise approach to retirement planning.”

But wait! Money today is worth more than money tomorrow – that’s not just something your uncle says to borrow twenty bucks. While you’ll get a higher percentage for every year you delay claiming Social Security, you must consider the time value of money. After all, you can’t take those Social Security checks with you to the great beyond.

The “Patient Payoff” Approach (Waiting Until 67)

The main advantage of delaying Social Security benefits is painfully obvious: more money later. Sure, you could take early benefits at 62 and invest them in stocks, hoping to strike it rich like your neighbor who claims he made a fortune in cryptocurrency. But the guaranteed, risk-free rate from delaying often proves to be the better deal.

If you’re the picture of health – you know, the type who runs marathons at 60 and has never met a vegetable you didn’t like – and your family tree is filled with centenarians who lived to see their great-great-grandchildren, then waiting for Social Security benefits might be your best bet.

However, delayed gratification isn’t always wise when your knees start making sounds like a bowl of Rice Krispies every time you stand up. Sometimes, time becomes more precious than money.

The “Show Me The Money Now” Approach (Claiming at 62)

None of us knows our expiration date. While running out of money in retirement is scarier than most horror movies, claiming early Social Security comes down to personal preference if your financial house isn’t made of straw.

Let’s be honest – a healthy 62-year-old might have more fun checking items off their bucket list than their 67-year-old self. Sure, Future You will have more income from Social Security benefits, but they might also have less energy for activities like:

• Hiking the Appalachian Trail
• Learning to salsa dance without throwing out a hip
• Traveling to those dream destinations
• Starting that small business you’ve always wanted

If you’re 62, financially comfortable, but have a child or grandchild who’s eating ramen for every meal (and not the fancy kind), claiming early to share some of your Social Security check with them could be a thoughtful move. It’s like being Santa Claus, but with government benefits instead of toys.

For those still scratching their heads about the best time to claim Social Security, take your time weighing options. Consulting with a financial advisor might help determine your eligibility and optimal strategy, though they probably won’t find your Social Security jokes as amusing as I do. If you’re in doubt and don’t need the cash today, erring on the side of caution by delaying could be wise. At worst, you’ll have more money to leave your heirs, who will surely use it responsibly and not blow it all on whatever the equivalent of avocado toast is in the future.