Social Security is primarily known for its retirement benefits, and given that most people think of 65 as the typical retirement age, you might think that most people would wait that long before taking their Social Security benefits. Yet in actuality, more people claim Social Security benefits at 62, the first opportunity at which one can claim retirement benefits, than at any other age, including nearly half of women and more than 40% of men. That fact raises a simple question: Why do so many people take early benefits? Let's look at some possible reasons below.
Reason 1: Many people can't afford to wait.
It's true that claiming Social Security at 62 means that you'll get 25% less in monthly benefits than if you waited until the full retirement age of 66. However, many people don't have the luxury to wait an extra four years before taking monthly checks from Social Security. Being able to continue working into your 60s is far from a guaranteed proposition for today's older workforce, and layoffs, health problems, or other unforeseen circumstances can force you to give up plans to keep earning income as long as you had hoped. If you don't have enough in savings to bridge the gap between the end of your career and full retirement age, then taking early Social Security benefits at 62 can be the best option you have available to make ends meet.
