Why Workers Sign Up for Social Security at Age 62

Getty ImagesMany workers claim Social Security as soon as possible, but they might regret that decision later. The most popular age to sign up for Social Security is 62, with 32 percent of men and 38 percent of women born in 1946 claiming benefits at that age. Starting benefits at age 62 provides valuable retirement income as soon as possible, but it also triggers a reduction in monthly payments because retirees collect them over a longer period of time. A 62-year-old who signs up for Social Security in 2014 will get 25 percent smaller checks than if he waited to claim at age 66, his full retirement age. Here's why many retirees claim Social Security at 62, even though it results in significantly smaller monthly payments. Already out of the workforce. People who are unemployed at age 62 and unable to find a new job often sign up for Social Security to bring some income into the household. "Some people who did not plan to sign up at age 62 may have experienced a job loss during a bad economy, and they need the income," says Andy Landis, author of "Social Security: The Inside Story." Those who are employed full time between ages 60 and 62 are 30 percent less likely to claim Social Security early than those who no longer work full time, according to a new Government Accountability Office report. "Many unemployed older workers struggle to find new jobs and may face unique re-employment challenges, such as employer reluctance to hire older workers or out-of-date skills. And, long-term unemployment can motivate older workers to claim early Social Security," according to the report. A strenuous job. People who work in physically demanding jobs including mechanics, construction, precision production, operators and farming are 55 percent more likely to claim Social Security benefits early than workers in other fields, GAO found. Those in managerial and professional jobs are 32 percent less likely to sign up early than other occupations. Workers without a college degree were also 23 percent more likely to claim early.