There’s a reason 62 is a very popular age to file for Social Security. It happens to be the earliest age seniors are allowed to sign up for benefits. Many retirees are aware that they can’t get their full monthly Social Security benefit until they reach full retirement age, which is 67 for those born in 1960 or later.

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But the lure of the money is what often drives retirees to sign up for Social Security as early as possible. They’re willing to accept a reduction in their monthly payments for the promise of a monthly check years sooner.

Plus, taking benefits at 62 can be a savvy financial move for some people. Those who wait to sign up for Social Security risk ending up with less total income from the program by virtue of holding off.

But while claiming Social Security at 62 does make sense for some retirees, it’s not necessarily the best strategy for everyone. In some cases, it’s a move that could sorely backfire.

Why filing for benefits at 62 doesn’t always work out well

Some seniors find themselves well-off in retirement, thanks to a combination of Social Security and a generous nest egg. But a large number of Americans have a lot less retirement savings than they should.

The Federal Reserve puts the median retirement savings balance among 65- to 74-year-olds at just $200,000. That’s a nice amount of money at face value, but it’s very little over a 20-year (or more) retirement.

The problem with claiming Social Security at 62 is that many retirees need a larger monthly benefit to compensate for a lack of savings. Those who retire in their 60s with several million dollars can probably claim Social Security at any age without worrying about their finances one way or another. But for seniors who are short on savings, an early filing becomes dangerous.

Claiming Social Security at 62 could also leave some retirees short on lifetime income. Those who don’t end up living very long tend to come out ahead financially by taking benefits early. But those with longer lifespans commonly lose out on total Social Security income by signing up for benefits as early as possible.

And that ties into another key issue. A larger monthly Social Security benefit helps protect against longevity risk.

People can’t predict how long they’ll live. But those with a family history of longer lives should consider holding off on Social Security rather than signing up as soon as they turn 62, especially if they find themselves in great health at the time.

It’s an important decision to think through

Claiming Social Security at 62 is by no means a universally bad idea. It’s also not guaranteed to be a good idea.

That’s why it’s so important to give the decision plenty of thought. It’s also a good idea to run the numbers and understand the implications of taking benefits at different ages before submitting an official Social Security application.

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