There are a lot of differing opinions out there on the benefits of claiming Social Security early versus late. Since claiming early reduces your benefits, some say that it’s not worth losing out on extra money to claim early. However, claiming Social Security at 62 could offer you a little more security and some time to adjust your retirement budget and find what works best for you. In a time where the market and our economic future is so uncertain, some extra security in your finances is never a bad thing. Here are 5 reasons why you should claim Social Security at 62 if there is a second wave of COVID-19.

It can potentially save you money if the market crashes.

Similar to the first wave of COVID-19 back in March and April, the stock market could crash and wreak havoc on your investments.

Another reason to claim? Withdrawing your savings during a market downturn means selling when stock prices are lower. This could mean that you lose money on your investments. To avoid this, you should keep as much money as possible in your retirement account until the stock market bounces back.

If you are already retired or have no choice but to retire in your early 60s, claiming your benefits early means that you won’t be relying entirely on your savings to make ends meet. This offers more security in your finances and will help stretch your savings further in the event of another market crash.

It can help if you lose your job.

Roughly 16.2 million Americans have applied for unemployment benefits for at least 2 consecutive weeks, while this number is down from last week, jobless claims appear to be on the rise again. If we were to enter a second wave of COVID-19, more layoffs could be on the horizon. Without a vaccine and with no end in sight for this pandemic, you could be unemployed for a significant amount of time if you lose your job now.

Choosing to claim your benefits early can provide some extra income if you lose your job, especially with the additional $600 per week payment put in place by Washington. While this $600 benefit is expected to end by August, some members in Congress are pushing for it to continue until 2021.

The good news about claiming early is that you can continue working if you get another job down the road. Depending on how much you are earning, some of your benefits could be withheld, but your benefits will be recalculated when you reach full retirement age – 67 years old – to make up for the reductions.

It can make affording early retirement easier.

 Older adults fall into one of the higher risk categories when it comes to contracting COVID-19. Continuing to work during the pandemic could be extremely risky for some. Retiring early is a big decision and shouldn’t be made without some serious thought. However, this might be the right move for you if you have worries about your health. If you choose to start collecting benefits early, you can retire more comfortably.

Reduce the Advisory Fees You Will Pay During Retirement.

By choosing to collect benefits early, you can afford to move more dollars into an accumulation annuity and eliminate advisory fees on that invested money. You’ll be receiving guaranteed payments through your Social Security benefits to supplement your current income, giving you some extra money to invest and grow for your retirement and for your beneficiaries. Specifically, investing in an accumulation annuity will help you reduce your advisory fees and protect and grow your wealth, even during market downturns.

Get Peace of Mind During a Difficult Time and Spend Less than 4% of Your Income.

Taking Social Security benefits early can help make sure that you are not overdrawing your retirement funds. Financial professionals suggest following The 4% Rule with your portfolio, which means never withdrawing more than 4% annually from your retirement portfolio. Especially with an uncertain market future, sticking to that 4% or less rule will ensure that you don’t outlive your income.

Social Security benefits will also help you stay at the appropriate withdrawal level by giving you some extra income each month to work with. You will withdraw less from your portfolio because your current income is being supplemented with Social Security benefits.

Bonus: What if You Need More Income Than What You Get by Taking Social Security at Age 62?

Invest a portion of your principal into a Single Premium Immediate Annuity to give you important income now! When you purchase a single premium immediate annuity, your payments typically begin within a month of purchase. Immediate annuities are often very attractive to older retirees because older clients typically receive higher payouts. Older clients will collect over a shorter period of time, so their monthly payments will be higher.

While claiming Social Security benefits early isn’t right for everyone, now may be as good a time as ever to think about claiming early due to the pandemic. A volatile market makes retirees worried about their money and claiming early can help alleviate some of that stress with some added security in income and safety for their investments. If you have questions about this process, give us a call at (770) 685-1777 or visit to schedule a FREE consultation!

You can visit for the most up-to-date information on Social Security benefits and how COVID-19 is affecting them.


Active Wealth Management is a private wealth management firm located in Atlanta, GA. Our team is passionate about educating clients in order to empower them to invest and retire successfully and we believe in managing our client’s assets actively. Active Wealth Management works with three primary groups of people; pre-retirees, retirees, and business owners. 

Active Wealth Management is led by our Founder and President, Ford Stokes, and by our Senior Vice President, Brandy Seats. They aim to help clients understand their current financial situation, analyze their current portfolio, and develop a customized financial plan to accomplish their goals. If you would like more information about the firm, please visit our website,, or call our office at (770) 685-1777. You will not be passed off to another advisor. You will meet with either Ford or Brandy. You can schedule directly into their calendars at