Social Security at 62 Pros and Cons: The Travel Factor Most Advisors Miss

The conventional wisdom says wait. But what if the “smart money” advice is wrong for your life?

Quick Answer: The Social Security at 62 pros and cons aren’t what most people think. You can claim at 62 and receive about 70-75% of your full benefit. But this isn’t really about math – it’s about what you want your early retirement years to look like and what matters most to you personally.

(In this article we use ‘full retirement age’ or FRA; the Social Security Administration calls this ‘normal retirement age’ or NRA. If your date of birth was Jan 2, 1960 or later, your full or ‘normal’ retirement age is 67.)

Jeff and I recently were discussing the Social Security at 62 pros and cons and how when we start claiming Social Security benefits could affect our travel and retirement plans – and we wanted to share what we’ve learned.

Like most people, we’d always heard the standard advice: wait as long as possible to maximize benefits. But the more we dug into our own situation, the more we realized this decision is way more personal than the financial calculators suggest.

Everyone tells you to wait. Financial experts, retirement calculators, even your well-meaning friends all say the same thing: “Don’t claim Social Security at 62. Wait until full retirement age. Better yet, wait until 70 and maximize your benefit.”

But here’s a question that might change everything: What if waiting isn’t right for your situation?

Before diving deeper, here’s what early claiming looks like in real dollars (The exact reduction varies by birth year).

Example: If your full retirement benefit would be $2,000/month:

At age 62: ~$1,400/month ($16,800/year)
At full retirement age (67): $2,000/month ($24,000/year)
At age 70: ~$2,480/month ($29,760/year)

How the Numbers Add Up Over Time

Age You Start Benefits	Monthly Check	Total by Age 75	Total by Age 80
62	$1,400	$218,400	$302,400
67 (Full Retirement Age)	$2,000	$192,000	$312,000

Key Insight: By age 75, the early claimant has received more total money ($218,400 vs. $192,000). However, by age 80, the person who waited has caught up and pulled ahead slightly ($312,000 vs. $302,400).

Breaking Even: How Long Before Waiting Pays Off?

If you start collecting Social Security at age 62, your monthly benefit is permanently reduced by about 25–30% compared to waiting until your full retirement age (currently between 66 and 67, depending on your birth year).

By waiting, you won’t get any payments during those early years – but once you do start, your monthly check will be higher.

But ✨ How long will it take for those bigger checks to “catch up” to the money you already collected by starting early?

That’s called the break-even point – and for most people, it doesn’t happen until your late 70s or even 80s.

For example:

If you claim at 62, you might collect about $1,400/month, starting right away.
If you wait until 67, you might collect about $2,000/month — but you’ll have missed out on 5 years of $1,400 payments, or about $84,000 in total.
At $600 more per month ($2,000 − $1,400), it would take about:
$84,000 ÷ $600/month = 140 months, or roughly 12 years — meaning you wouldn’t break even until about age 79.

So if your health or family history suggests you might not live that long, waiting could mean you never make up the difference.

The conventional wisdom: Wait until 70 to maximize your lifetime benefits. But there’s something the spreadsheets can’t calculate…

let’s explore the pros and cons of claiming Social Security at 62 that go beyond simple mathematics.

The Quality Years Financial Advisors Ignore (Ages 62-67)

Financial advisors love to show you break-even charts. “If you live past 78,” they say, “waiting until full retirement age pays off.” But they’re missing something huge: What about the quality of years 62 through 67?

Let’s talk about what claiming early actually gives you: Five extra years of financial freedom during what might be your healthiest, most energetic retirement years.

At 62, you’re likely still:

Physically capable of that month-long RV trip across the country
Energetic enough for extensive international travel (think walking tours through Europe, not just cruise ships)
Mentally sharp enough to learn new skills or start a business
Strong enough for adventure travel and physically demanding experiences

Five years of living on your terms instead of your employer’s terms.

If You’re Already Not Working

Maybe you’ve already left your job-whether by choice, layoff, health reasons, or to care for family. If you’re living on savings or a spouse’s income, claiming Social Security at 62 can provide crucial cash flow relief.

Consider this scenario: You’re 62, not working, and watching your investment accounts shrink every time you make a withdrawal for living expenses. Claiming Social Security now could fundamentally change your financial strategy:

The Math of Preservation:

Without Social Security: You’re forced to sell investments every month to cover expenses, regardless of market conditions. Down market? You’re still selling. Bull market? You’re missing out on growth because you need the cash.
With Social Security: Your basic living expenses are covered by guaranteed income. Your investment accounts can stay invested and continue growing through market cycles.

Example: Say you need $4,000/month to live. Without Social Security, you’re pulling $48,000 annually from investments. Over five years (ages 62-67), that’s $240,000 you’ve removed from potential growth.

But if Social Security covers $1,400/month, you only need to withdraw $2,600/month from investments – a $16.800 annual difference. Over five years, you’ve preserved an extra $84,000 in your accounts to keep growing.

The Compound Effect: That $84,000 left in a diversified portfolio averaging 7% annually becomes about $117,000 by the time you’re 67. You’ve essentially “made” an additional $33,000 by claiming early and preserving your investments.

Market Timing Benefits:

Bear markets: Social Security income means you’re not forced to sell at losses
Bull markets: Your preserved investments can ride the gains instead of being cashed out
Sequence of returns protection: You avoid the devastating effect of poor early retirement returns

As American expats and nomads, Jeff and I have learned firsthand how visa limitations shape where and how long we can stay anywhere. We’re discovering that Social Security claiming could completely change the game for us.

The retirement visa reality: Many countries offer retirement visas, but they require proof of guaranteed monthly income – usually from a pension. Without Social Security, we don’t qualify for these visas in countries where we’d love to establish longer-term residency.

Retirement savings and investment accounts don’t count as “guaranteed income” for visa purposes. This distinction between guaranteed pension income and investment wealth can be the difference between qualifying for long-term international residency or being limited to tourist visas.

What this could mean:

At 62 with Social Security: Potential access to retirement visas in countries like Portugal, Albania, Mexico, and many others
Without guaranteed pension income: Limited to tourist visas, constant visa runs, or countries with more expensive investor visas

We’re still investigating the specific country requirements, but the pattern is clear: many countries want to see that monthly pension income, not just a lump sum in savings.

There’s a big difference between the lifestyle (and visa) you can maintain with guaranteed income versus living entirely off savings:

With guaranteed monthly income: Easier budgeting, visa qualification, less stress about market downturns affecting your travel funds
Living on savings only: Constant calculations, visa limitations, worry about how long the money will last

Understanding these cost differences is crucial for your planning – see our cost of living comparisons for popular expat destinations to see how far your Social Security income could stretch internationally.

If your retirement plans include international living – whether full-time expat life or extended stays abroad – the visa implications of Social Security retirement income could be more valuable than the extra monthly dollars from waiting until 70.

The Real Numbers (Because Math Still Matters)

If you claim at 62, you’ll receive approximately:

70-75% of your full benefit (a permanent reduction of about 25-30%)
Payments for 5+ extra years before others even start claiming
Guaranteed monthly income regardless of market conditions or policy changes

Example: If your full retirement benefit would be $2,000/month:

At age 62: ~$1,400/month ($16,800/year)
At full retirement age (67): $2,000/month ($24,000/year)
At 70: About $2,480/month ($29,760/year)

The break-even point is usually around age 77-79. But here’s the question: What’s the value of those extra years of freedom?

Here are some questions that might change how you think about this decision:

About Your Life Right Now

What could you accomplish with five extra years of financial freedom? That business you’ve always wanted to start? Extended international living? The extensive travel while you still have the energy and health for adventure?

If you’re not currently working, how much longer can you afford to wait? Claiming at 62 might be the difference between draining your savings and preserving them. It could mean the difference between tight budgets and comfortable living.

How different will you be at 67 compared to 62? Think about your energy levels for travel and adventure. At 62, you might tackle that African safari or multi-month overland journey. At 67, you might prefer shorter, less demanding trips. Both are valid—but they’re different experiences.

Do you have international retirement plans? Many countries require proof of guaranteed monthly pension income for retirement visas. Social Security qualifies; investment accounts usually don’t. This could be the difference between tourist visa limitations and true expat residency.

About Your Family

How would extra income change your household dynamics? Could one of you stop working to pursue passions, volunteer, or simply enjoy life? How much is that freedom worth to your relationship?

What opportunities are time-sensitive? Some travel experiences have physical requirements that become harder with age. That multi-week hiking trip through national parks, the photography expedition to remote locations, the cultural immersion travel that requires lots of walking and energy – these don’t wait for optimal Social Security timing.

What if you’re already retired or not working? Every month you wait while living on savings is money that could still be growing in your accounts. Social Security at 62 might allow you to preserve your nest egg for true emergencies or legacy planning.

About Certainty vs. Optimization

How much is certainty worth to you? That monthly payment hitting your account at 62 – no worries about future Social Security changes, no concerns about benefit cuts, no wondering “what if.”

What would guaranteed income let you do with your other savings? Maybe you could be more aggressive with investments knowing you have that income floor. Maybe you wouldn’t need to tap retirement accounts during market downturns.

Simple Decision Checklist

Consider claiming at 62 if you answer “yes” to any of these:

✓ Do you need income now to cover living expenses?
✓ Are you in poor or average health?
✓ Do you want to enjoy retirement while physically active?
✓ Are you concerned about future benefit reductions?
✓ Would you rather reduce withdrawals from retirement savings?

The Security of Something Over Nothing

There’s something profoundly different about having money coming in versus having money promised to come in later.

Social Security at 62 gives you options. Maybe you start traveling now rather than waiting until you’re 70? Maybe you take a part-time job you actually enjoy instead of grinding at a career that’s burning you out. Maybe you start a small business.

It’s not just about the money – it’s about the freedom to choose.

Think about this: How many 62-year-olds do you know who are in better health, have more energy, and are more excited about life than those same people at 70?

What Your 75-Year-Old Self Might Tell You

Imagine sitting down with yourself at age 75. What conversation would you want to have?

“I’m so glad I worked those extra five years to get a bigger Social Security check”?

Or: “Those five years from 62 to 67 when I had my health, energy, and Social Security coming in – those were magical. I traveled, I helped family, I pursued my interests. I lived fully during some of my best years.”

Only you know which conversation feels right.

Here’s the question that might change how you think about this entire decision:

Would you rather have:

Five years (ages 62-67) of smaller Social Security payments plus complete freedom from work stress, or
Five more years of working while waiting for larger payments later?

When you frame it as freedom versus optimization, the math looks different, doesn’t it?

What’s the value of waking up every day knowing you don’t have to go to work? What’s it worth to answer only to yourself and your family?

Making Your Decision: A Framework

Step 1: Know Your Numbers

What would you receive at 62 vs. full retirement age?
What are your other income sources?
How much do you need monthly to feel secure?

Step 2: Assess Your Personal Situation

Your health and energy levels now vs. projected future
Your family’s needs and circumstances
Your work stress and satisfaction levels
Your retirement dreams and goals

Step 3: Consider What You Can’t Get Back

Time with family during your healthiest years
Opportunities to pursue travel while you have energy
Freedom from work stress and schedules
The security of money in hand versus money promised later

When Early Claiming May Makes Sense

Consider claiming at 62 if:

You’re burned out or stressed at work
You’re already not working and living on savings
You have health concerns or family health history suggests earlier claiming
You have other retirement income sources
You want to pursue meaningful work or volunteer opportunities
You value security and certainty over optimization
You have specific travel or adventure goals that require good health and energy
You’re planning international retirement and need guaranteed income for visa requirements
Your savings are being depleted faster than expected
You want to preserve retirement accounts and live on guaranteed income instead

When Waiting Might Be Better

Consider waiting if:

You love your work and it energizes you
You need the higher monthly payment for basic security
You have limited other retirement savings
You’re in excellent health with family longevity
You’re comfortable with uncertainty about future benefits

Frequently Asked Questions

Can I work and claim Social Security at 62?

Yes, but if you earn above certain limits your benefits may be temporarily reduced. The earnings limit changes annually and the calculations are different both for the first year you receive benefits as well as for the year that you will reach your FRA.

Once you reach your FRA, there is no earnings limit.

Under FRA: $23,400/year ($1,950/month) – $1 withheld for every $2 over limit

Year reaching FRA: $62,160/year ($5,180/month) – $1 withheld for every $3 over limit

If you claim benefits prior to your FRA and continue to work, any reduction to benefits paid due to exceeding the earnings threshold will be added back to your payments once you reach FRA.

What if I claim early but then decide to delay later benefits?

Once you claim, your monthly benefit is locked in at the reduced rate. There are three program exceptions to this:

1. Withdrawing your application: If you regret claiming benefits early, you can withdraw your application within 12 months of your initial benefit approval. This essentially cancels your claim and treats it as if you never applied. However, to do this, you must repay all benefits you (and your family, if applicable) received. This is a “do-over” option, but it can only be done once in your lifetime. After withdrawing, your benefits will continue to grow as if you hadn’t filed.

2. Suspending your benefits: If you’ve reached your full retirement age (FRA), but haven’t yet reached age 70, you can voluntarily suspend your benefits. This allows you to earn Delayed Retirement Credits (DRCs), increasing your monthly benefit by approximately 8% for each year you delay until age 70. Unlike withdrawing your application, suspending benefits doesn’t require you to repay past benefits received. You can restart your benefits at any time, or they will automatically resume at age 70.

3. Returning to work before full retirement age (FRA): If you claim Social Security before your FRA and continue to work, your benefits may be reduced if your earnings exceed the annual earnings limit. However, these withheld benefits are not permanently lost. Once you reach your FRA, the Social Security Administration (SSA) will recalculate your benefit, potentially increasing it to account for the previously withheld payments. This helps to partially offset the reduction from claiming early.

While there may be situations where one of these strategies is helpful, this is a complex set of circumstances that should be thoroughly discussed with an experienced and knowledgeable financial advisor.

How does claiming affect spousal benefits?

Claiming decisions can impact spousal benefits. Coordinating timing with your spouse can maximize household income. Your spouse may be eligible for benefits based on your work record, and the timing of when each of you claims can affect the total household Social Security income.

What about the Social Security trust fund running out?

The Social Security trust fund is projected to be depleted by 2033 or 2034. That doesn’t mean benefits will stop – but without changes from Congress, benefits could be cut by about 25% at that point. This uncertainty affects how people think about when to claim. Some choose to claim early to avoid the risk of reduced payments later, while others bet that Congress will act to shore up the program.

We’re not telling you what to do.

(In fact, we’re not financial advisors – this is just food for thought.)

But we are asking you to think beyond the spreadsheets and break-even analyses.

Think about what early claiming would actually mean for your monthly budget. Then ask yourself the harder questions:

What would you do with guaranteed monthly income starting at 62?
How would it change your daily life? Your stress level? Your marriage? Your relationship with work?
What adventures become possible? What security does it provide?
How much do you value having those extra years of freedom during your early 60s?

The “smart money” says to wait. But smart living? That’s a more complex calculation.

Social Security claiming isn’t just a financial decision – it’s a life decision. It’s about when you want to feel financially secure, when you want to have choices, and what you want your 60s to look like.

The experts can tell you the mathematically optimal choice. Only you can determine the optimal choice for your life.

What does your gut tell you?

Important: This article is for educational purposes only. We are not financial advisors or professionals. Social Security claiming decisions have long-term implications, so consider consulting with qualified professionals for guidance specific to your situation.

Important: Your Social Security Statement updates annually with your latest earnings, so check back each year for the most current estimates.

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