There’s a reason age 62 has long been a popular age to sign up for Social Security: It’s the soonest age you can take benefits. And while waiting can pay off financially, for some people, it’s hard to resist the allure of an immediate monthly paycheck.

However, you should know that for each month you claim Social Security before reaching full retirement age, your benefits are reduced permanently. And if your full retirement age is 67, which is the case if you were born in 1960 or later, then claiming Social Security at 62 means slashing your monthly checks by roughly 30%.

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For this reason, some seniors are advised to wait on claiming Social Security. But here’s why you may want to file at 62, despite the reduction that ensues.

When your benefits are really just bonus money

The Federal Reserve reports that as of 2022, the median retirement savings balance among Americans aged 65 to 74 was just $200,000. Over the course of a decades-long retirement, that’s just not a lot of money.

If your savings are in similar shape, then it may not be the best idea to claim Social Security at 62. Without a lot of savings, you’re likely to be more reliant on those benefits to cover your ongoing expenses.

But some people manage to save millions of dollars for retirement by living below their means, consistently funding an IRA or 401(k), and investing wisely. If you’re in that boat, then claiming Social Security at 62 may not be a bad idea at all. It could even be a good one.

It may be that you’re hoping to conserve your savings as much as possible, whether because you’re worried about running out or because it’s a big goal of yours to leave a financial legacy behind. If you claim Social Security at 62, that’s money you’ll have on hand to spend on yourself sooner — and at a time when you might be able to make the most of it.

Say you’re eager to travel, but you’re hesitant to tap your nest egg for big trips in your early 60s. If you’re not reliant on Social Security to pay for basic retirement expenses and the money is really just extra, you could claim benefits at 62 and use it to take different trips while you still can.

This isn’t necessarily to say that after 62, your body is going to suddenly fall apart. But if you’re in good shape at 62 and you can afford a reduction in benefits due to having plenty of money, you may want to claim Social Security so you can treat yourself to the experiences you’ve earned.

Look at the big picture

It’s easy to assume that claiming Social Security at 62 is not the most prudent move, given the reduction in benefits it will cause. But before you make that choice, take a look at what you’ve saved and think about your goals. You may come to the realization that you’ll be just fine financially if you claim benefits early and use the money to do the things you’ve always dreamed of.

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