There’s a reason 62 tends to be a popular age for claiming Social Security. It happens to be the earliest age you’re allowed to sign up.

Most seniors are aware that if they file for Social Security at 62, they’re going to be reducing their benefits substantially each month. But many are willing to take that hit to get their money sooner.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

I used to think that claiming Social Security at 62 was a pretty terrible idea, especially given Americans’ general lack of retirement savings. AARP reports that 20% of U.S. adults ages 50 and over have not yet saved a dime for retirement. So locking in reduced benefits sounds dangerous for people in that boat.

But while I do think people need to be cautious about when they claim Social Security, I no longer stand firm that taking benefits at 62 is a poor choice. For some people, it actually makes a world of sense.

When you aren’t so reliant on the money

If you’re nearing your 62nd birthday with $40,000 or $50,000 saved for retirement (or, worse yet, nothing), then I’d probably say holding off on Social Security and working longer is a smart thing to do. But just because a large percentage of Americans don’t have adequate retirement savings doesn’t mean there aren’t outliers.

Some people wind up with millions of dollars in savings by funding a 401(k) or IRA diligently from a young age and making smart investment choices. And someone with $4 million or $5 million by age 62 probably doesn’t have to worry about reduced Social Security checks.

So if you’re in that boat, or in a situation where you’re confident you can live comfortably on your savings alone, then it’s not a bad idea at all to claim Social Security at 62. If that money gives you the freedom to retire a little early or enjoy life more, you deserve it.

When you don’t want to gamble on your lifespan

Claiming Social Security at 62 can seem like a dangerous financial move. But it’s also a move that could actually give you more Social Security all in, not less.

If you don’t end up living a very long life, you could benefit by claiming Social Security as soon as you’re able to and collecting more monthly payments. So if your health is iffy, or you have parents, aunts, and uncles who all passed away in their early to mid-70s, then you may want to consider signing up for benefits as soon as you’re able to start getting that money.

To be clear, no one can predict how long they’ll live. But even if you don’t have much savings, if you don’t see yourself living past your early or mid-70s, then filing for Social Security as soon as you can could be wise. Not only might it put more money in your pocket in total, but it could also be your ticket to retiring at 62.

It’s one thing to retire at 65 or 67 or 70 when you expect to live until your 80s or beyond. But if you don’t expect to live nearly as long, then you deserve to retire at a point where you have some good years left to enjoy the freedom of not having a boss to report to.

When it comes to financial matters, it’s good to be open-minded. I’m glad I’ve changed my tune on claiming Social Security at 62. While I’m not certain when I want to sign up for benefits myself, I think it’s important to acknowledge that it’s a perfectly acceptable, and even smart, move for some people.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Join Stock Advisor to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.