There are a select few instances where that's advisable, and the primary ones are listed below.
A recipient is in ill health - There aren't many reasons to take Social Security early; however, there are occasions when it's the correct thing to do, says Leonard P. Raskin, a money manager at Raskin Global, in Hunt Valley, Md. "You should take Social Security payments early if you are ill and your life expectancy is significantly shorter than the time it would take to break even if you waited until full retirement or age 70 on delay," Raskin says.
A recipient absolutely needs the cash - "If you are short of cash flow, then taking Social Security early might be beneficial, as long as you're not working, since the employment income would cause the Social Security income to be reduced if taken before full retirement age," says Norman M. Boone, a financial planner with Mosaic Financial Partners, Inc., in San Francisco.
A recipient loses his or her job - "If someone loses their job unexpectedly, without sufficient retirement assets to draw down while delaying social security payments, it would make sense to begin drawing Social Security early," says William Stack, founder of Stack Financial Services LLC, in Salem, Mo. "Also, if someone is in good health, but working in an occupation that has become physically too demanding to continue, then drawing Social Security early might make sense, as well."
If you do need to take Social Security payments early, you have a backup up plan, that allows you to refill the financial tank later on.