Social security is a safety net that many people rely on once they reach well into their retirement years. The age in which an individual draws upon their social security only matters if they draw it earlier than age 70. If an individual continues to earn income past the age of typical retirement then they can generally afford to wait until they reach this max retirement age in order to receive full benefits. If the individual does not continue to earn income then drawing early, at age 62, might be the best course of action. This latter concept is especially true when the ability to file a withdrawal of application form is available.
This question is answered by answering several other questions. The most obvious questions are, “How is my health?” and “Do I need the money?” The answers to these questions generally determine the answer to the original question. The benefits that an individual may receive at age 62 are greatly reduced when compared to age 66. If the individual can wait till age 70 they will receive extra credit and will be paid more per month than their full benefits would allot. However, if the individual has poor health or they actually need the money it is best to apply earlier.
Yes. In fact, this tactic might be the best one of all. An individual who can afford to bank the money they receive from social security payments would benefit the most from this strategy. These individuals apply at age 62, bank the money and receive interest for it. When they turn 70 they will file for a withdrawal of application and repay all of the money they were paid. They may then reapply and receive their full benefits at age 70. The end result is several thousand dollars worth of interest they have accrued in their savings account and a higher monthly allotment.