Most Americans are eligible to receive Social Security benefits as early as age 62, and many assume they must automatically begin receiving benefits as soon as they are eligible. But taking Social Security benefits is never mandatory, and you have some flexibility as to when you begin taking them.
Most people believe they should start taking benefits when they reach their retirement age. What that age is depends on when you were born. For many years, everyone’s “full retirement age” (also called “normal retirement age”) was 65. But beginning with people born in 1938, it started increasing. For people born after 1959, full retirement age is 67. (Find your full retirement age using Social Security’s calculator at http://www.ssa.gov/retirement/ageincrease.htm )
However, you don’t have to wait until your full retirement age to start taking benefits. You can begin receiving them as early as age 62. But, in this case, the benefits will be reduced.
Alternatively, you could defer receiving Social Security benefits until after your full retirement age. In this case, your benefits will go up; the increase is a certain percentage for each month past your full retirement age.
So, should you start collecting benefits as early as age 62, wait until your full retirement age, or delay? The answer depends on several factors, but generally speaking, your best option is to seek advice from a professional. Discuss your choices with your advisor or contact your local Social Security office. (Call Social Security Administration at (800) 772-1213 to find an office near you.)