With Social Security’s Uncertainty in the Trump Economy, 7 Reasons To Take It as Soon as You Qualify

Under President Donald Trump’s second administration, particularly with the cost-cutting methods of the Department of Government Efficiency (DOGE), the fate of Social Security is once again in question.

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Retirees who worry about whether Social Security may be there in full by the time they reach full retirement age may be considering taking these benefits as early as they can, at age 62.

Here are seven reasons to take Social Security as soon as you qualify.

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Health Issues

“Health is the biggest reason to claim Social Security when eligible at 62,” according to George Pikounis, a financial advisor at Burns Estate Planning.

“You never know what can happen with your health.” If you can afford to do it and don’t want to wait, there aren’t many downsides to that decision, he said.

For example, a client of his had to suddenly get open heart surgery. “He claimed his Social Security soon after because he didn’t want to miss the chance to collect his hard-earned money.”

If people have a chronic illness or a low life expectancy, taking the money and getting what they can out of it may be the best choice, Pikounis advised. “They spend their whole lives putting money into Social Security and if they die before they can claim their fair share, the money is wasted.”

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It Reduces Withdrawals From Other Assets

Today’s economy, with high-tariffs and inflation, may be putting stress on retirees’ savings, but if you have the consistent income of Social Security, you don’t have to draw as much from other retirement assets. “This can remove the burden on your assets and increase the longevity of those financial plan.”

If Your Income Is Inconsistent

One of the hardest things about retiring is not having a consistent income anymore, Pikounis pointed out.

“Social Security payments can fill that gap while easing some burden on retirement portfolios, which could extend the portfolios’ longevity in retirement while guaranteeing a set paycheck each month. That’s a relief in itself,” he said.

If You’re Struggling To Keep or Find Work

Retirees returning to work is becoming more common in today’s economy, but Pikounis has seen retirees have difficulty finding work in their 60s.

“Many employers prefer to hire younger workers who may stick around longer, leaving retirees in the dust. Having Social Security income at 62 can help bridge the gap into a more comfortable retirement.”

When It Gives You Peace of Mind

“Many of my clients have a mental burden taken off their shoulders by having a consistent income and not drawing it out of their portfolio. Not only does it extend their plan’s longevity, but it can also put them in a better position to do more for the next generation,” Pikounis said.

If You’re a Veteran

Randall Yates, a veteran financial Advisor and co-founder of VA Loan Network, has found that for most of his veteran clients — particularly those with limited retirement funds or with health issues — applying for Social Security at 62 is not only OK, “it’s a sound strategy.”

With today’s inflationary economy, tapping benefits early helps counter increasing out-of-pocket expenses, lessens pressure to tap retirement accounts, and provides a base income to augment part-time jobs or gig earnings without depleting reserves, he explained.

“I’ve seen early benefits act as a bridge for clients who retire before Medicare kicks in, particularly those laid off in their late 50s.”

And with growing concerns around future benefit reductions or tighter eligibility enforcement, locking in now offers psychological and financial stability. “The key is tailoring the decision to each household’s longevity outlook, cash flow needs and broader asset mix — not just chasing the max benefit at 70.”

When You’re OK Receiving a Reduced Amount

If you do choose to take your Social Security benefits as early as possible, it’s also important to remember that you’ll receive up to 25% less than you would have if you’d waited until full retirement age, according to Bethany Laurence, an expert at Nolo.com. This number goes up to 30% for people born in 1960 or later.

For example, if you were scheduled to receive $21,180 annually if you retired at your full retirement age, say 66, then at 62, you’d receive only about $15,885 in Social Security annually from retirement until the end of your life, she explained. “If you waited to retire until age 70, you’d receive about $28,000 annually, an 87% increase in monthly payments over claiming them at age 62.”

Considerations and Concerns

While there are plenty of good reasons to take Social Security early, Pikounis warned that “since we can’t predict future policy changes, it’s hard to say whether locking in benefits early will help or harm people’s finances from a policy perspective.”

He’s more concerned for future generations who may not be able to receive as much Social Security as current retirees. “People who collect now are less likely to be exposed to future cuts or changes to Social Security.”

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This article originally appeared on GOBankingRates.com: With Social Security’s Uncertainty in the Trump Economy, 7 Reasons To Take It as Soon as You Qualify