The Motley Fool had a good article on the No 1 reason to take Social Security early (age 62).
I agree completely...I did it. Yes, there was about a 25 % discount in what I would receive if I waited until 67 or so but I needed the money....pure and simple.
Because I was living in Colombia I got a huge boost. The exchange rate between the US dollar and the Colombia peso suddenly surged from like 2,500 to 2,800 then to 3,200 then to 3,500 then went all the way to 5,000 !
Today it sits at about 3,900 but still its great and I can live a good life on just my Social Security. Any other income is just gravy for vacations or investing.
Here is what Motley Fool says....listen up !
¨If you're eager to stop working and start enjoying your retirement and you can make it happen -- but only if you claim Social Security -- then starting your benefits at 62 can be well worth it. As long as you won't put yourself at risk of having too little money for the rest of your life if you make this choice, there's very little reason for you to keep toiling away at your job when your freedom is within reach.
No one knows exactly what is going to happen in the future. It doesn't do you much good to work for an extra five, six, seven, or even eight years, only to retire and get sick at 70 and not live long enough to break even for the benefits you missed or not be able to enjoy your larger Social Security checks.
If your Social Security combined with your retirement account distributions (at a reasonable withdrawal rate) will provide you with the money you need both now and in the future, you may as well file for benefits and begin doing the things you have been dreaming of.
Getting a few hundred extra dollars per month for the sake of it isn't worth giving up all those years of traveling the world, gardening, or hanging out with your grandkids.¨
