Everyone knows that waiting to collect Social Security at your full retirement age gives you a much higher benefit than claiming it at 62.
But is that collective wisdom true?
Not always. Like everything else, it depends on your circumstances.
If, at age 62, you don't need to use your Social Security to live, you could invest it for the eight years between 62 and 70. Keep in mind that if you are younger than full retirement age, you can only earn $21,240 working at a job. Earn more than that limit and Social Security will deduct $1 from your payments for every $2 you earn above the limit. When you reach full retirement age, there is no limit on your much you can earn and still receive benefits.
Still, for those eight years until you reach age 70, if you can invest all of the Social Security check, you could end up with a tidy sum after eight years. A $700 monthly check invested at 3 percent interest starting at age 62 would grow to $76,744 by age 70 ($67,200 in contributions and $8,844 in interest,) according to GoBankingRates.
You would therefore have more years of retirement and an investment bonus, but only if you can afford not to spend the investment.
For most people, however, it pays to wait as long as you can. Social Security docks a percentage of your check if you retire early. You lose 30 percent of your benefit if you claim between 62 and 67. If you wait beyond full retirement age, you get a bonus and your $1,000 check would be about $1,240.