Many people think claiming Social Security benefits at age 62 is the best option. After all, 62 is the earliest age you can get Social Security payments. If you want extra money now, why wait? But before you rush to claim benefits, there is one very important fact you need to understand — claiming early can affect how much money you get every month for the rest of your life.
Let’s break it down in a simple way so you can make the right decision for your future.
What Happens When You Claim Social Security at 62?
Age 62 is the earliest you can apply for Social Security retirement benefits. It sounds good to get money early, but the amount you get is smaller than if you wait. The full benefit is based on your “full retirement age” (FRA), which depends on the year you were born. For many people, this is around 66 or 67 years.
If you claim at 62, your monthly payment is reduced by a percentage because you are getting it earlier than your full retirement age. This reduction is permanent. That means your benefits will stay lower for your entire life.
For example, if your full retirement age is 66 and your full benefit is $1,000 per month, claiming at 62 could reduce your payment by about 25% to $750 per month.
Why Do People Still Claim Early?
Some people choose to claim at 62 because they need the money right away. Maybe they lost a job, have health problems, or want to enjoy retirement earlier. For these reasons, getting money sooner might make sense.
Others might not realize how much they will lose by claiming early. They might not know their full retirement age or how the reduction works. This is why understanding the details is very important.
The One Key Piece of Info: Your Monthly Benefit Will Be Lower Forever
The biggest thing to know is that once you claim early, your benefit amount is cut for good. Even when you reach your full retirement age, your monthly payment won’t increase to the full amount — it stays reduced.
This means if you live for a long time, the total amount of money you get from Social Security will be less than if you had waited. Over many years, this can add up to a big difference.
What If You Wait to Claim?
If you wait to claim Social Security until your full retirement age, you get your full monthly benefit. Even better, if you delay beyond that age — up to age 70 — your monthly payment actually increases.
This is called “delayed retirement credits.” For every year you delay past your full retirement age (up to 70), your benefit grows by about 8% per year. That means if your full benefit is $1,000 at 66, waiting until 70 could raise it to $1,320 per month.
So, waiting can mean a bigger monthly check, which can help you better in your later years when you might need more money.
How to Decide What’s Best for You?
There is no one-size-fits-all answer. It depends on your health, financial needs, and how long you expect to live.
- If you need money now because of job loss, health, or personal reasons, claiming early might be the right choice.
- If you can afford to wait, delaying your claim can mean more money every month for many years.
- If you have a family history of living long, waiting can be smart because you will benefit more in the long run.
- If you have other income or savings, it might be better to wait and get a higher monthly benefit later.
It can help to talk to a financial advisor or use online calculators from the official Social Security website. They can show you different scenarios based on your age and income.
Some Other Important Things to Keep in Mind
- Working while claiming: If you claim before full retirement age and keep working, your benefits might be reduced if you earn too much.
- Spousal benefits: If you are married, your decision can affect what your spouse gets too. Sometimes couples plan together to maximize benefits.
- Taxes: Social Security benefits might be taxable depending on your total income.
- Changes in rules: Social Security rules sometimes change, so it’s good to check the latest information from the official Social Security Administration (SSA) website.
Final Thoughts
Claiming Social Security at 62 may sound tempting because you start getting money early. But remember, that monthly payment will be smaller for life. If you can wait and your health and finances allow, delaying your claim can mean a bigger, more comfortable income later on.
Take your time, understand your full retirement age, and plan carefully. This can make a big difference to your financial security during retirement.
