You can take Social Security at 62. But should you?

Key Points:

• Most Americans claim Social Security starting at age 62, the earliest eligibility age, but experts suggest waiting until age 70 to maximize lifetime benefits due to increased monthly payments and average longevity.
• Claiming Social Security early may make sense for those who need immediate income or have shorter life expectancies due to health issues, but most retirees underestimate their life expectancy and may lose significant potential benefits by claiming early.
• Concerns about Social Security's solvency have prompted many to claim benefits early; however, experts believe Congress will likely act to preserve benefits for current retirees, with any cuts more likely affecting younger workers.
• Investing Social Security benefits taken early could potentially yield higher returns if investments earn around 5% annually, but this strategy carries risks and may not outperform the guaranteed increased payments from delaying benefits until age 70.
• Financial experts generally recommend securing the core of retirement income through Social Security due to its stability, advising caution about relying on investment risk to compensate for reduced early benefits.