I turn 62 early next year and plan to retire soon after. Most advice says I should wait to claim Social Security because my monthly benefit will be higher, but I have heard concerns about the program’s long-term financial outlook. Is there ever a good reason to claim at 62?         

The latest Social Security Trustees Report projects the retirement trust fund could be fully depleted around 2032 if Congress does not act. If that happens, Social Security will still collect payroll taxes and pay benefits, but retirees could face an across-the-board cut of about 22%.

Most experts still expect Congress to step in to strengthen Social Security. Even if lawmakers do not act, waiting to collect benefits would still produce a higher monthly benefit because any across-the-board benefit cut would apply to everyone. While claiming at age 62 means collecting benefits sooner, it also permanently locks in a smaller check. That said, there are several situations in which claiming Social Security at 62 can be financially responsible.

How your claiming age affects your benefits

You can start collecting Social Security at age 62, but doing so permanently reduces your monthly benefit by about 30% compared with waiting until full retirement age (67 for those born in 1960 or later). Delaying until 70 increases your benefit by about 24%. For example, a $2,000 monthly benefit at full retirement age would drop to about $1,400 at age 62 or rise to roughly $2,480 if you wait until 70.

When claiming early makes sense

For some retirees, claiming at 62 is a practical move. If you have stopped working and need income for basic expenses, Social Security can provide a steady check right away. It can also serve as a bridge if you retire early or lose a job in your early 60s by allowing you to delay withdrawals from retirement accounts or a pension.

Some retirees also claim Social Security early to reduce withdrawals from their IRA or 401(k) during market downturns. The tradeoff is a permanently reduced lifetime benefit. For married couples, timing can be coordinated as part of a broader strategy. One spouse may claim early to bring in income while the other spouse delays to boost their future or survivor benefit.

Health and longevity are also important factors to consider. Delaying benefits generally results in higher monthly payments, but the advantage of waiting depends on how long you expect to receive those payments. The break-even point between claiming at 62 and full retirement age is around age 78 or 79.

If you are still working, this is another factor to keep in mind. Before full retirement age, earnings above the Social Security’s annual limit can temporarily reduce your benefit.

Why delaying helps

For many retirees, waiting means a larger guaranteed monthly benefit for life and often a higher lifetime payout if you live into your late 70s or beyond. It can also provide stronger protection against outliving savings.

For couples, delaying the higher earner’s benefit can increase the survivor benefit, which may help provide more financial security for a surviving spouse. Before deciding, it is smart to review your numbers. You can create a free account at SSA.gov/myaccount to check your earnings record and estimate benefits at different ages.

There is no “one-size-fits-all” answer. For some people, waiting still makes the most sense. But if you need income, have health concerns or are coordinating benefits with a spouse, claiming at 62 may be the better choice. The key is to base your decision on your own circumstances, not fear about Social Security's future.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.