Early retirees often face a choice about when to claim Social Security benefits, especially if they retire due to health issues or job loss. According to the Federal Reserve, the median retirement savings for Americans aged 55 to 64 was $185,000 in 2022, which can deplete quickly if relied upon solely for income.
Claiming Social Security before reaching full retirement age can result in reduced monthly benefits for life. For instance, if someone retires at age 62 and their full retirement age is 67, they may benefit from delaying their Social Security claims by tapping into savings, working part-time, or leveraging home equity for income in the meantime.
