One nice thing about Social Security is that older Americans get to choose when to take retirement benefits. You can sign up for Social Security at any point in time once you turn 62. But it's important to understand how your filing age ultimately affects your benefits before locking in your decision.

If you take Social Security at age 62, you’ll need to consider how to pay for health care until you can sign up for Medicare at age 65. The need to purchase a private plan can add significant costs to your budget in those early retirement years and could eat up a chunk of your Social Security check each month.

Here's the average Social Security benefit for people age 65. Waiting longer to claim benefits, even past retirement age, can boost monthly payments