Taking SS at 62 while husband waits until FRA - investing benefits but worried about downsides

Your investment strateGY sounds RISKY to me!! Remember SS is GUARANTEED income for life. When you take it early you're permanently reducing that guarantee! The SSA doesn't care if you invest it and lose it all in the stock market crash that's coming. Plus the government can change the rules anytime they want. My sister took her SS early and REGRETS it every single day!!

This is actually a common strategy, and you've identified most of the key considerations. Here are a few things to think about: 1. Spousal benefits: If your husband's benefit is substantially higher, you'd eventually be eligible for up to 50% of his FRA benefit as a spouse. The catch is that if you file early for your own benefits, your spousal benefit will also be reduced, even if you claim it later. 2. Earnings test: If you work before your FRA, you'll be subject to the earnings limit ($23,300 in 2025 for those under FRA the whole year). $1 in benefits is withheld for every $2 earned above that limit. This might impact your investment strategy if you plan to work part-time. 3. Survivor benefits: If your husband passes away first, you'd be eligible for survivor benefits. If you've taken your own benefits early, this doesn't affect survivor benefits - you'd get his full amount if he waited until FRA. 4. Taxation: Up to 85% of your Social Security can be taxable depending on your combined income. Your strategy of investing might create additional taxable income that could make more of your SS benefits taxable. Have you run calculations on the break-even point - at what age the higher FRA amount would outweigh the extra years of early benefits plus investment returns?

Taking SS at 62 can be a smart move depending on your full financial picture! I was in a similar spot - decided to take mine at 62 last year while my wife waited. One thing nobody mentioned yet - have you checked if you're eligible for any spousal benefits NOW before filing for your own? Sometimes that can be a better option. Also, when I tried calling SSA to discuss all this, it was IMPOSSIBLE to get through! After 3 weeks of trying, I found this service called Claimyr (claimyr.com) that got me connected to a real person at SSA in under 15 minutes. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU. Totally worth it since I had specific questions about how my pension affected my benefits (WEP rules are so confusing). The SSA rep actually found me eligible for more than I thought! Anyway, everyone's situation is different, but I don't regret taking mine early at all.

your probably makeing a big mistake. my mother took her SS at 62 and now she can barely survive. inflation is getting worse every year and that smaller check will seem even smaller in a few years. do you really want to struggle in your 80s just to have a little extra in your 60s???? think long term!!

I think your plan is reasonable based on what you've shared. One technical detail others haven't mentioned: taking your benefit early doesn't just affect the amount - it can also impact your husband's claiming strategy. If you file for your own benefits, your husband cannot file a restricted application for spousal benefits only while letting his own benefit grow (though this only applies if he was born before 1954, which it sounds like he's not). I actually ran some calculations for my own situation that might help you. With average 6% investment returns and accounting for taxes, my break-even age was 81. Since women statistically live longer than men, waiting is often mathematically optimal, but there are psychological benefits to having the money earlier that calculations don't capture. One approach worth considering: Take your benefits at 62, invest as planned, but if/when your husband claims his benefits and you become eligible for spousal, you might be able to step up to a higher amount (depending on the difference between your PIAs).

my aunt did this exact thing ur talking about. she took ss at 62 and invested in some dividend stocks. made ok money for couple years then the company cut the dividend and stock went down. now she wishes she just waited for the bigger check. just saying dont count on investmants working out perfect

To answer your follow-up question about stepping up to spousal benefits: You're partly right. When you eventually qualify for spousal benefits (when your husband files), you'll receive your own reduced benefit plus the difference to bring you up to the maximum spousal amount (which is reduced because you filed early). Specifically, when your husband files, SSA will calculate your spousal benefit as the higher of: 1. Your own benefit amount, or 2. Up to 50% of your husband's PIA (reduced if you claimed before your FRA) So yes, filing early permanently reduces both benefits, but you'll still get the higher of the two when your husband files. For some people with significantly different earnings records, this can still result in a noticeable increase even with the early filing reduction.

I took my SS early and regret it every month when i see that smaller check! But my situation was different i didnt have any other savings. One thing nobodys mentioned - if you claim early and then change your mind you can withdraw your application within 12 months of filing. You gotta pay back all the benefits but it gives you a do-over if your investment plan doesnt work out.

NONE of you are mentioning the MASSIVE changes coming to Social Security!!!! The trust fund is going to be DEPLETED by 2034 and then what????? Taking it early might be the ONLY way to get anything before they change all the rules and CUT BENEFITS for everyone!!! Wake UP people!!!!

@original poster - did you ever get this resolved? I'm curious what you decided to do since I'm facing a similar decision next year. My financial advisor actually suggested the same strategy you're considering.