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AS RETIREMENT approaches, one of the pivotal decisions many individuals face is when to start claiming Social Security benefits. It’s a choice that carries significant implications for financial security in the later stages of life. While the full retirement age (FRA) for Social Security benefits is typically between 66 and 67, many opt to claim benefits as early as age 62. This was the case for my husband and me, and our decision was guided by a blend of personal circumstances and financial considerations.
At the heart of our decision was the recognition of our individual retirement goals and health considerations. Like many, we began considering our Social Security options well in advance of reaching retirement age. While delaying benefits until full retirement age or beyond can result in higher monthly payments, we weighed this against our desire to enjoy retirement while we were still relatively young and healthy.
For us, claiming Social Security at 62 aligned with our plans for an active retirement. We wanted to seize the opportunity to travel, pursue hobbies, and spend quality time with loved ones. By opting for early benefits, we were able to kickstart these plans without delay. This decision was rooted in the understanding that life is unpredictable, and while delaying benefits might offer higher payments in the future, there are no guarantees concerning health and longevity.
Financial considerations also played a significant role in our decision-making process. We evaluated our overall retirement savings, investments, and anticipated expenses to determine the optimal time to start claiming Social Security. While delaying benefits can lead to higher monthly payments, it requires drawing upon other retirement assets to cover expenses in the interim.
In our case, claiming benefits at 62 allowed us to preserve our other retirement accounts for longer, providing a buffer against unexpected expenses and ensuring financial flexibility in the years ahead. Additionally, by claiming early, we could potentially reduce the need to tap into retirement savings during market downturns, thereby safeguarding our long-term financial security.
Furthermore, we considered the impact of claiming Social Security on our tax situation. While benefits are subject to federal income tax, the extent of taxation depends on various factors, including total income and filing status. By claiming benefits earlier, we could potentially manage our tax liability more effectively, especially if we anticipated higher income in the future from sources such as pensions, part-time work, or required minimum distributions (RMDs) from retirement accounts.
Another crucial factor in our decision was the ability to maximize survivor benefits for the surviving spouse. Claiming Social Security early can impact the survivor benefit amount, potentially reducing it if the primary earner passes away before reaching full retirement age. However, by considering our respective life expectancies, health status, and overall financial picture, we felt comfortable with our decision to claim benefits early, knowing that it would still provide valuable support to the surviving spouse in the event of one partner’s passing.
It’s important to acknowledge that the decision to claim Social Security at 62 is not one-size-fits-all. Each individual or couple’s situation is unique, influenced by factors such as health, longevity, financial resources, and personal preferences. While some may prioritize maximizing monthly benefits by delaying claiming, others may value the freedom and flexibility that come with early benefits.
Ultimately, the decision to claim Social Security at 62 requires careful consideration and planning. It’s essential to evaluate the trade-offs involved and assess how claiming benefits aligns with your broader retirement goals and financial strategy. For my husband and me, claiming benefits early provided the opportunity to enjoy retirement on our terms while maintaining financial security and flexibility for the future. It was a decision that reflected our values, priorities, and vision for the years ahead.
The above was created by ChatGPT based on this request: “Write an 800-word article on why my husband and I claimed Social Security at age 62.” To read more about this experiment, check out Man vs. Machine.
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The AI generated writing just seems very robotic. 🙂
I love the potential of AI but I found my eyes glazing over as I read these articles. They are too generic. I want to read something that provides a new approach to these age old topics and provides a unique voice and perspective. None of the articles take a strong enough position on any of the topics to motivate me to do anything different. Snoozers.
As I read through these posts, I notice the distinctive “voices” of the different AI large language models.
I find that interesting, too. The formulaic nature of the writing may help prevent the mindless proliferation of AI content.
I find your use of AI after-the-fact troubling, even if it is detectable. Most of what is used as proof on this website’s articles is anecdotal, and knowingly using false information breaches a trust. If you have no “skin in the game” to write the article, then don’t publish. One must remember that not all readers are everyday ones, but could come here via a search engine at a difficult time in life (financially, and otherwise). I myself only come here once a month or two and was unaware of the AI trial. I can’t support such a blatant misuse of that trust in any journalism, so I will reluctantly unsubscribe.
How much fuller could my disclosure be? I announced the experiment ahead of time, the articles carry a byline that reflects the AI engine used, and the end of the piece explains the prompt that generated the article.
I’ll admit that I didn’t read the whole thing, but what I did read reminded me of a mediocre textbook, as opposed to the good ones, with colorful examples that helped you to understand and remember the point.
This is the second AI generated editorial that I’ve read. It’s rather flat and superficial. I don’t think I will be reading any more AI generated articles. They are a waste of my time!
This is one article that I think many, if not most, HD readers would spot as a fake a mile away. It’s heavy on assertions, light on specifics, and flatly contradictory in many places. For example:”Another crucial factor in our decision was the ability to maximize survivor benefits for the surviving spouse.” Claiming early and maximizing survivor benefits are diametrically opposed; I don’t think HD has a single writer, past or present, that would be comfortable with positing such nonsense, and then putting their name on it. Not to mention the fact, it would never make it past the site’s editor-in-chief :).
It’s one of the many reasons why many of us keep coming back.
Not so bad but flat writing and shallow analysis.
I found this one particularly lacking in detail, or analytic support. Lots of words, but not particularly convincing. The survivor benefit discussion seemed a total justification.
Agreed. But would the typical (non-HD) reader see the flaws? I suspect not.
Some word salad but I’m impressed with this turn of phrase: “By opting for early benefits, we were able to kickstart these plans without delay.”
Word salad. The final paragraph could have been lifted from any number of articles on MarketWatch or Yahoo Finance.
Of the eight pieces I had AI generate, this was the one that gave me most pause. The advice fails to spell out the long-term cost of claiming early, and downplays the impact on survivor benefits.
Nice AI story. Here’s a real one.
I took SS at 62.
My reasoning was based on my calculated transition age of 85. My parents lived to 77 and 93, so 85 seemed reasonable. The other reason is Congress’ focus on reducing benefits 17 years ago.
I didn’t spend any differently in my early retirement years receiving those payments.
I have no regrets “yet”. I may feel differently if I make it past 90.
Thank you!
If the government decides to not fully finance Social Security, then your reduced benefit from claiming early will be reduced by an additional 17%. Better to endure the cut of full delayed benefits than the reduced amount resulting from early claiming. In addition your cost of living adjustments in total dollars is reduced every year of your retired lifetime.