Taking Social Security at 62 is a hot topic. Experts weigh in.

Take your Social Security astatine 62.

That’s the buzzy proposal blowing up connected TikTok and YouTube.

Droves of “finfluencers,” arsenic these societal media personalities doling retired fiscal tips are called, person been posting videos and memes to warrant starting Social Security status benefits astatine property 62 — the earliest property allowed — and past investing the wealth each period successful stocks.

That statement is successful stark opposition to what astir fiscal advisers and status experts person been urging radical to bash for years, which is to hold tapping your payment until property 70 if you tin spend to, thereby reaping a larger monthly cheque for the remainder of your life.

Delaying your Social Security benefits astir ever makes full sense, Laurence Kotlikoff, a Boston University economics prof and Social Security expert, told Yahoo Finance.

“The biggest mistake radical marque erstwhile it comes to Social Security is taking Social Security excessively aboriginal astatine a overmuch little benefit,” helium said. “For the immense bulk of workers, delaying Social Security done property 70 is the optimal strategy.”

Setting speech that longstanding proposal — for a infinitesimal — let’s instrumentality a person look astatine the lawsuit for claiming benefits early.

Read more: What is the status property for Social Security, 401(k), and IRA withdrawals?

Lofty banal prices successful caller months person created an ambiance of anticipation for concern returns that transcend the bump successful your Social Security you get by waiting to assertion benefits.

You tin instrumentality Social Security arsenic aboriginal arsenic property 62, but your payment tin beryllium slashed arsenic overmuch arsenic 30% from what it would person been astatine your Full Retirement Age (FRA). For anyone calved successful 1960 oregon later, your FRA is 67.

If you hold benefits from your FRA until property 70, you gain delayed status credits. Those travel to astir an 8% summation for each twelvemonth until you deed 70, erstwhile the credits halt accruing.

The S&P 500 has returned astir 14% truthful acold this year, and implicit the past decade, the mean yearly instrumentality with dividends is conscionable implicit 12%.

So the statement goes that by investing your benefits successful the market, you tin easy marque up for a smaller cheque with large concern returns.

While that could happen, nary 1 has a crystal shot for aboriginal returns. The quality of Social Security is that the larger payment you get by delaying is guaranteed, risk-free, and it comes with an automatic yearly ostentation adjustment.

“The yearly cost-of-living adjustments are astir retirees' lone root of status income not taxable to ostentation risk,” Kathleen Romig, manager of Social Security and disablement argumentation astatine the Center connected Budget and Policy Priorities, told Yahoo Finance. “That ostentation extortion is truly important, due to the fact that Social Security is the biggest root of income for astir retirees.”