Millions of Americans born in 1964 have a big decision to make in 2026: should they start taking Social Security?
That’s because age 62 is the first eligibility year for Social Security payouts, a timeline that lasts through age 70, when you have to claim program payouts if you haven’t already.
Financial experts say the decision on when to take Social Security is a uniquely personal and timely one, noting there are big advantages and disadvantages in doing so. Here are three expert-approved good reasons to start taking Social Security at age 62 if you’re considering doing so in 2026.
Social Security payouts may be diminished by 2032
According to the U.S. Congressional Budget Office, Social Security Retirement Trust Funds are projected to run out of money in 2032. That’s one year earlier than they estimated back in 2024.
“If Congress doesn't act until then, there will be money in from payroll taxes but only enough to cover around 81% of scheduled benefits,” Michael Liner, founder of Liner Legal, a law firm specializing in Social Security Disability Benefits, told NTD News. “That means across-the-board cuts.”
To put that into perspective, that means that if someone is expecting a monthly benefit of $1,000 before, “they would only receive $810 in 2032,” Liner noted.
Aim for early payouts for the spouse earning less income.
According to some financial experts, the most common reason to draw Social Security benefits early is for the lower-paid person in a married couple.
“The lower Social Security benefit drops off when either spouse passes away, so the lower payments often go away before the breakeven ages," Mark Wilson, founder and president at MILE Wealth Management, an investment advisory firm, told NTD News. “In general, wait as long as possible to start drawing benefits for the higher benefit and draw as early as possible for the lower benefit.”
If you need the income
People with limited savings who need cash and have few other income sources should consider taking Social Security at 62.
“Downside issues like job loss, reduced hours, and adverse health issues can create a need for income that may not be supported by savings, in which case claiming Social Security early may be necessary," Harold Zazula, a Boston-based CFP and retirement income certified professional, told NTD.
Social Security recipients with shorter life expectancies may also get more total lifetime benefits by claiming early. “Additionally, a spouse with the lower benefit may claim early while the other spouse delays to get the higher ongoing benefit after the first spouse passes,” Zazula said.
When Taking Social Security Early Doesn’t Make Sense
Waiting to take Social Security later also has its benefits.
“The obvious drawback is that monthly payments are significantly lower (up to 30 percent reduction) compared to waiting until full retirement age,” Robert Johnson, professor of finance, Heider College of Business at Creighton University, told NTD.
Downside risks also factor in for even people with shorter life expectancies. “If they’re the higher earner, taking payments early will permanently reduce the Social Security benefit their spouse receives,” Zazula said. “Taking cash early may also impact other areas of financial planning by increasing adjusted gross income with Roth IRA conversion strategies, Medicare surcharges, and with higher asset withdrawals needed later in life."
The views and opinions expressed are those of the interviewees. They are intended for general informational purposes only and should not be construed as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.