Taking Benefits at Age 62

• You can start receiving Social Security benefits as early as age 62 if you so choose. But Social Security warns that if you decide to start benefits that early, your monthly benefit will be reduced by 25 percent than if you wait until later. The reason for this is that the average person doesn't get an average benefit of $1,000 until age 66. In this scenario, you'd only receive $750 per month at age 62. This doesn't increase over time outside of your other financial investments.
  
  

Taking Benefits at Age 70

• Age 70 is the latest you can wait to start Social Security benefits. And Social Security points out that if you wait until then, it can benefit your monthly check substantially. Compared to age 62, waiting until 70 can net you $1,320 per month if you reach the $1,000 average benefit by age 66.
  
  

Life Expectancy

• A big factor in determining when to start receiving Social Security will depend on your general life expectancy, says CBS Money Watch. You can get a basic determination of this based on your family history and how well you take care of your health. If you estimate that you could potentially die in your 70s, CBS Money Watch's money chart shows that taking benefits at 62 would be more beneficial overall. If you estimate living to 90 or older, waiting until 70 would be net you a larger overall income.
  
  

Passing Benefits to Survivors

• Social Security says that when you start the benefits can make a difference in how much your spouse or a child could get of the benefits if you happen to die. Should you die at age 66 (which is the Full Retirement Age), a surviving spouse can potentially get the full amount of benefits you would have received. A child under 18 can receive the same thing, or if the child had a disability before the age of 22. However, if you retire at 62 and then die, your survivors won't be able to receive your full benefits. But they can still get the lower amount you would have received.
  
  

Working in Retirement

• One positive to Social Security is that you can still work while receiving benefits. Nevertheless, if you continue to work before full retirement age of 66, Social Security could cut some of your benefits if you make over a certain amount. As of 2011, Social Security deducts one dollar for every two dollars you earn above $14,160. If you turn 66 at some point in 2011, Social Security will deduct one dollar for every three dollars you make above $37,680 until you actually turn 66. The good news is that deductions will be readjusted when you reach age 66, and you'll ultimately make back the amount withheld once you decide to fully retire. At that point, you can continue to work without any deductions while you receive your larger benefits.