What are the benefits of retiring at 62?


Quick Answer

The main benefit of retiring at 62 is the ability to receive Social Security retirement income for a longer period of time. This is advantageous if the retired individual has a short life expectancy, cannot find work, is working only part time or needs the funds to invest elsewhere.

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What are the benefits of retiring at 62?
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Full Answer

Although initiating Social Security benefits at 62 means receiving smaller amounts per month over the course of a lifetime than if payments begin at full retirement age or later, the Social Security Administration estimates that over a lifetime, whether a person retires early or late, the overall benefit payout remains about the same. Retiring at 62 allows someone with health problems or a family history of shorter life expectancy to receive monthly income when it is most needed. Unemployed older workers may need early Social Security income if their unemployment insurance runs out and it takes a long time to find work. Those who want to continue to work part time may find that a lower but early monthly Social Security payment supplements their income.

Early retirees who have adequate income to support themselves without Social Security benefits may initiate payments and use the monthly distributions in investments for the sake of beneficiaries. Alternatively, they can use the Social Security payments that begin at age 62 to enhance their quality of life during retirement years.

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