The Truth About Social Security at 62: How Early Filing Could Save Your Retirement | The Limitless Retirement Podcast

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Should you grab your Social Security benefits at 62 or hold out for more? Danny lays out five surprisingly strong arguments in favor of claiming early. But this isn’t about rules—it’s about your situation. He dives into how life expectancy, tax impacts, and personal priorities all factor into this critical decision.

Key Topics:

  • Understanding Social Security Filing Options (00:00)
  • Evaluating Life Expectancy and Financial Needs (02:53)
  • Strategies for Couples with Age Gaps (05:49)
  • Unlocking Family Benefits and Financial Security (09:07)
  • The Importance of Timing and Tax Implications (11:58)

5 Strategic Reasons Filing for Social Security at 62 Could Be a Smart Move

Is Delaying Social Security Actually Costing You Thousands?

A 9% drop in the markets. A 6% plunge in a single day. If you’re feeling anxious, you’re not alone. Volatility like this triggers panic. You may be wondering: Should I cash out? Adjust my plan? Do nothing and wait it out?

Before making a move that could jeopardize your long-term goals, take a breath—and read this first.

We’re not experiencing a random blip. This crash is largely driven by newly announced tariffs disrupting global supply chains. Companies like Apple, Ford, and Nike are facing rising costs. Investors are spooked. The word “stagflation” is back in the headlines.

But here’s what matters: how you respond. Market crashes are part of the investing journey. They’re also opportunities to reposition and protect your retirement.

Key Takeaways

  • Filing at 62 can be financially advantageous for some individuals.
  • Life expectancy plays a crucial role in deciding when to file.
  • Collecting Social Security early can help preserve retirement savings.
  • Younger spouses may benefit from filing early to secure income.
  • Family benefits can be unlocked by filing early, providing additional income.
  • Financial needs may necessitate early filing for Social Security.
  • Tax implications should be considered when deciding when to file.
  • Delaying benefits may not always be the best strategy for everyone.
  • Personal health and family situations significantly impact retirement decisions.
  • It's essential to align Social Security filing with overall retirement strategy.

You’ve heard it again and again: Wait until 70 to claim Social Security benefits. But what if that common advice is wrong for your unique situation?

In this article, we reveal five powerful, often-overlooked reasons why claiming benefits at 62 could be the smarter move for your retirement—reasons that go beyond monthly benefit amounts and speak directly to your lifestyle, legacy, and financial security.

1. Health Concerns or Shorter Life Expectancy

If you don’t expect to live well into your 80s, waiting for a higher monthly benefit may actually reduce your total lifetime benefits.

  • Breakeven analysis shows you must live until your early 80s for delay strategies to pay off.
  • If you take $1,400/month at 62 and live to 75, you could collect $26,000 more than if you had waited until age 67.

Yes, average life expectancy in the U.S. is around 79—but that’s from birth. If you’re in poor health or have a family history of shorter lifespans, early filing may make more sense.

2. Preserve and Grow Your Portfolio

Most people overlook how collecting early reduces your reliance on portfolio withdrawals—which can significantly improve your long-term financial outcome.

Here’s how:

  • Suppose you need $4,000/month to live.
  • At 62, Social Security gives you $1,500, and you only need $2,500/month from savings.
  • If you wait until 70, you must withdraw $4,000/month for 8 years—that’s $384,000.

Even modest portfolio growth could outperform the benefit increase from waiting. And unlike Social Security, investment gains can be passed on to heirs.

3. Maximize Benefits with a Spousal Age Gap

Early filing may be ideal when you’re significantly younger than your spouse.

  • The younger spouse collects their own reduced benefit at 62.
  • When the older spouse passes, the younger switches to a higher survivor benefit.

If you delay your own benefit and your spouse dies before you file, you’ve potentially missed out on years of income you can never get back. Filing early ensures you receive something during those years.

4. Unlock Family and Dependent Benefits

If you have a minor or disabled child living at home, they may be eligible for Social Security benefits based on your record—but only if you start collecting.

  • Each eligible child may receive up to 50% of your full retirement benefit.
  • For two kids, that could mean an extra $24,000/year in household income.

Even with family caps in place (150–180% of your benefit), early filing could provide a critical income boost when your family needs it most.

5. You Simply Need the Income

This is the most practical—and common—reason to file early. Not everyone has the luxury of waiting.

  • Early benefits can help avoid high-interest debt or premature withdrawals from tax-deferred accounts.
  • It may also allow you to enjoy retirement sooner, rather than waiting until it’s too late to do the things you’ve planned for years.

Early filing also makes many retirees feel more comfortable spending in the early, more active years of retirement.

Don’t Overlook the Tax and Medicare Impact

Up to 85% of your Social Security may be taxable, depending on your income.

  • Filing early while in a lower tax bracket and deferring IRA withdrawals could reduce lifetime taxes.
  • Strategic timing can also help avoid Medicare IRMAA surcharges, which increase premiums for high-income retirees.

Proper planning around Social Security and other income sources can unlock major savings.

Conclusion: The Right Time to File Is Personal—Not Just Mathematical

While financial models often promote delaying benefits, real life isn’t a spreadsheet. Your health, family structure, lifestyle goals, and financial realities should all factor into your decision.

If claiming at 62 provides greater peace of mind, protects your portfolio, or supports your family today, then it may very well be the right move.

You’ve paid into Social Security your whole life—it’s time to make sure you get the most from it in a way that aligns with your personal strategy.

*This blog post is based on the insights shared by Gudorf Financial Group. For personalized advice tailored to your unique circumstances, always consult a financial, legal, or tax professional.*

Transcript: Prefer to Read — Click to Open

Danny (00:00.078)

You’ve heard it a thousand times, wait until 70 for social security. But what if waiting is actually costing you thousands of dollars? Today, I’m revealing five powerful reasons filing at 62 could save you and not hurt your retirement. By the end, you’ll understand exactly when early filing makes sense and how it could potentially save you thousands of dollars in your retirement plan.

Before we dive in, let’s address the elephant in the room. Yes, waiting until your full retirement age or even age 70 will give you a larger monthly benefit. That’s simple math. But for every year you delay beyond your full retirement age, your benefit increases by about 8%. And if you file at 62, you’ll receive approximately 30 % less

than your full retirement age benefit. But retirement planning isn’t just about maximizing a single number. It’s about optimizing your entire financial picture based upon your unique circumstances. Here are the five reasons why filing at age 62 may be your smartest move. The first reason it might make some sense to collect at age 62 is if

you don’t have a long life expectancy. This might seem obvious, but it’s worth emphasizing. Most breakeven analysis show that you need to live until at least in your early eighties to benefit from delaying social security. If you have serious health concerns or family history of shorter lifespans, collecting early can mean receiving more total benefits over your lifetime. Let’s take a look at an example.

If your full retirement age benefit would be $2,000 per month, taking it at 62 might give you around $1,400 per month. If you only live to age 75, you’d collect approximately $218,400 by filing at age 62 versus just $192,000 if you waited until your full retirement age at 67.

Danny (02:23.65)

That’s a difference of over $26,000 in your favor by filing early. Many people misunderstand life expectancy statistics though. When you hear the average life expectancy in the U S is around 79 years, that’s the life expectancy at birth. By the time you reach 60 or 65, your life expectancy is actually much longer. Typically another 20 years.

However, you know your personal health situation better than any statistical model. And if you have serious health concerns or family history that suggests a shorter lifespan, taking your benefits early ensures you’re actually getting to enjoy what you’ve earned rather than optimizing for longevity. The second compelling reason to file at 62 is if you want to keep growing your portfolio.

Here’s something most advisors won’t tell you, but collecting your Social Security benefits early can actually preserve your retirement savings. Think about it. Every dollar you receive from Social Security is a dollar you don’t have to withdraw from your investments. By collecting early, you’re allowing your portfolio more time to grow and potentially offsetting the reduced benefit amount. Let me illustrate this with some numbers.

Let’s say you need $4,000 in monthly living expenses, and if you collect $1,500 from Social Security at age 62, then you only need to withdraw $2,500 from your portfolio. But if you wait until 70 to collect and get $2,640 in Social Security, you would need to withdraw that $4,000 monthly from your portfolio for those eight years.

That’s an additional $384,000 in withdrawals. Even with a modest 5 % annual growth rate, the opportunity cost of those withdrawals could exceed the lifetime benefit of delaying your Social Security. This isn’t about taking the money and directly investing it, though some people do. It’s about the opportunity cost of depleting your portfolio while waiting for a larger Social Security check.

Danny (04:50.029)

your investments could potentially grow at a rate that exceeds the guaranteed increase from delaying benefits, especially during strong market periods. Those simplified social security analysis that you see online or in those online calculators don’t account for this portfolio preservation effect, which can be substantial over time. the next third reason that you may want to file at 62 where it may make sense

is if you and your spouse have a significant age gap. This is particularly important advice for the younger spouse. Let’s say you’re 62 and your spouse is 75 with a strong earnings history. If you wait until 70 to collect your own benefit but your spouse passes away before then, you’ve potentially missed out on years of collecting your own benefit before switching to the survivor benefit.

Here’s how the strategy works. The younger spouse collects their own benefit at 62. When the older spouse passes away, the younger spouse can then switch to the higher survivor benefit. This approach ensures you receive some income during those years instead of nothing. And let’s put some numbers to this. If your benefit at age 62 is $1,400 monthly,

and your spouse’s benefit, which would become the survivor’s benefit, is $3,000 a month, you could collect your $1,400 for several years before switching to the survivor benefit. If you had waited to file, you would have received $0 during those years. This strategy becomes even more powerful when there’s significant age gap or health difference between spouses. The key insight is that you’re not

looking at your life expectancy as the point to maximize your own benefits over. You’re looking to maximize your benefits until you switch over to that survivor benefit. By collecting early, you can receive some of those benefits during those years, then switch to that survivor benefit. This strategy can maximize your total lifetime benefits as a couple and provide important income security

Danny (07:16.299)

during those transition periods. The fourth reason to consider filing at age 62 is that it could potentially unlock family benefits. If you have a minor or disabled child still living at home, they may be eligible for benefits based upon your record, but only once you start collecting. These dependents benefits can add significant income to your household.

and they’re only available until your children reach a certain age limit. Each eligible child could receive up to 50 % of your full retirement benefit, even though you’re taking a reduced benefit amount by filing early. For example, if your full retirement benefit would be $2,000, though you’re receiving a $1,400 monthly benefit by filing at 62, each eligible child could receive

up to $1,000 per month until they turn 18. For a family with two eligible children, that’s an additional $24,000 per year that could be completely lost if you waited to file. It’s important to note though, that there are a maximum family benefit amount that caps the total amount that your family can receive based upon your record. Typically it’s between 150 to 180%.

of your full retirement benefit. However, even with this cap, the additional income for your family could be substantial. Waiting to file could mean missing out on thousands of dollars in family benefits that you’ll never get back. Additionally, filing early can sometimes unlock spousal benefits for your husband or wife if it

makes sense in your overall strategy. The fifth and perhaps most practical reason to file at 62 is simply that you need the money. If you’re facing financial challenges, taking social security early can provide crucial income that helps you avoid high interest debt or premature retirement account withdrawals. While financial experts might tell you to always delay benefits, they often assume you have other resources to draw on during those years.

Danny (09:37.419)

But let’s be realistic. Many Americans don’t have sufficient savings to bridge the gap between 62 and 70. If you find yourself in this situation, Social Security might be your financial lifeline. Another factor that we see that goes along with this is if you’re in retirement and by waiting to take your Social Security, it forces you to not spend money in retirement.

A lot of times our clients are hesitant to withdraw from their investment accounts to spend in retirement. And by delaying their social security to 67 or 70, they are missing out on some of their most important years in retirement where they could be doing all of the traveling and hobbies and experiences they wanted to do. But by collecting social security at 62, they have some income coming in.

and it allows them to be more flexible with their spending. Another consideration that’s often overlooked is the tax implications of your Social Security strategy. Depending on your other income sources, up to 85 % of your Social Security benefits may be taxable. By carefully planning when you take Social Security in relation to other income sources, like required minimum distributions from retirement accounts, you might be able

reduce your overall tax burden. For some people, taking Social Security early while in a lower tax bracket than drawing down tax deferred accounts later can result in paying less lifetime taxes than the reverse strategy. This is particularly relevant if you expect to be in a higher tax bracket later in retirement due to required minimum distributions from your retirement accounts.

which for most people start at either 73 or 75. It’s also worth considering how your Social Security decision affects your Medicare premiums. Higher income retirees pay more for Medicare Part D and Part B through what’s called IRMA or income related monthly adjustment amounts. By strategically timing your Social Security benefits and other income sources, you might be able to avoid these surcharges

Danny (11:58.033)

and potentially save yourself thousands of dollars in healthcare costs in retirement. The bottom line is that while delaying social security works well on paper and in theoretical models, real life is a lot messier. Your health, family situation, and other income sources and personal goals all matter tremendously in this decision. The right answer depends upon your complete financial picture.

not just maximizing one benefit. For some people, the peace of mind that comes with having guaranteed income starting at age 62 is worth more than the potential financial benefits of waiting. Don’t let anyone make you feel like you’re making a mistake by collecting at 62 if it aligns with your overall retirement strategy and personal circumstances. Always make the best decision for your situation.

Speaking of taxes, one of the biggest concerns I hear from people considering filing for Social Security is, won’t I have to pay a lot of taxes on those benefits? This is a legitimate concern, but what if I told you there are completely legal ways to receive your Social Security benefits tax free, regardless of when you file? In fact, I’ve helped numerous clients structure

their retirement income so they can pay zero dollars on their Social Security benefits. In the next video, I’ll show you exactly how to pay zero taxes on your Social Security benefits using a strategy that doesn’t require any fancy Roth conversion tactics or even having a Roth IRA in place. Click the link here to watch that video.

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