The No. 1 Reason to Claim Social Security at Age 62

Here's a Social Security trivia question for you: What's the most popular age for Americans to claim their retirement benefits? You win 10,000 points if your answer was 62. Those points can be used anywhere they're accepted (which, unfortunately, is nowhere -- but at least you can enjoy the satisfaction of being right).

You probably already know this, but 62 is the earliest age Social Security retirement benefits can be received. Should you claim benefits as early as possible, like so many other Americans? It depends on your reason for doing so.

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Some good reasons to claim Social Security at 62

Most financial planners could rattle off several great reasons to wait at least until you reach your full retirement age (which is 67 for anyone born in 1960 or afterward) to claim Social Security retirement benefits. The most important of those reasons is that you'll avoid the early retirement penalties that can add up to 30% of your benefits if you begin receiving Social Security at age 62.

However, there are also some good reasons to claim Social Security as early as you can. For example, I know a man whose close relatives all died at relatively early ages. He believes genetics aren't in his favor for living beyond his early 70s. As a result, he plans to claim Social Security at age 62 because doing so could increase his total lifetime benefits. If you're in a similar situation, this approach could make sense for you as well.

Another good reason for taking Social Security at 62 is that you have health problems that don't allow you to work full-time. Before you claim retirement benefits, though, you should first check to see if you qualify for Social Security disability benefits. However, if not, claiming Social Security at 62 could be your smartest move.

Some people lose their jobs and opt to retire early. If you're in this boat, Social Security benefits at 62 could be the difference-maker financially.

The best reason of all

I think the No. 1 reason to claim Social Security at age 62, though, is that it's the best option to achieve your retirement goals. How do you determine if the strategy is your best option? You'll have to make that call (ideally, with input from your family and help from a respected financial planner). However, several steps are important in making the decision.

First, you'll need to nail down what your retirement goals are. Do you want to travel extensively? Do you want to volunteer with non-profit organizations? Spend more time with family? Whatever your goals are, write them down.

Second, create a detailed budget to make sure you can afford to quit working at 62. Don't forget to include any costs related to your retirement goals. If you want to travel around the world, it can be expensive. Also, be sure to factor in the likelihood that your healthcare costs will rise as you grow older.

Third, consider alternatives that could still allow you to achieve your retirement goals while holding off on claiming Social Security. Maybe you could work part-time for a while to make enough money to delay receiving benefits while still being able to do much of what you want to do in retirement. It's possible that claiming at 62 is still the best option for you, but evaluating alternatives can help you make a better decision.

Different strokes for different folks

Both of my parents claimed Social Security benefits at age 62. However, I don't plan to do so.

I have a flexible job that will allow me to cut back on working gradually while doing most of the things I want to do in retirement. I don't have any health problems that would force me to retire early. Most of my older close relatives have lived into their 80s, 90s, or even past 100. Genetics (I hope) are on my side.

Studies have found that delaying filing for Social Security retirement benefits increases the lifetime amount received for most Americans. But you're not "most Americans." And while financial considerations are important, they're not the only thing to consider in deciding when to claim Social Security. As the old saying goes, "Different strokes for different folks."

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