The longer you wait to claim your Social Security benefits, the more money you will receive each month.
You can start claiming Social Security benefits at age 66 or 67, but if you claim early, you're locked into that reduced percentage.
Delaying claiming Social Security to maximize cumulative benefit can also pay off to claim early.
If you don't need your Social Security benefits to fund your lifestyle, then you should consider claiming them at 62 so you can put the money to work by investing in lower-risk assets.
If you elect to claim at age 62, you'd give up 30% of your FRA benefit, leaving you with $1,750 per month.
You should invest your lower monthly benefits at 62 if you want to achieve an average annual return greater than 4%.
If you invest your Social Security checks in a low-cost S&P 500 ETF, the odds of seeing a rate of return greater than 4% over a 20-year span are quite high.
If you are able, claiming your Social Security benefits at 62 and investing them could provide you with extra money for the later years of your life.
A handful of Social Security secrets could help increase your retirement income.