Personal Finance

Turning 62? 3 Things to Know About Social Security Before You Sign Up Early

Maurie Backman

Published: January 31, 2025 6:47 pm

One of the hardest decisions you might have to make as retiree, or near-retiree, is figuring out when to claim Social Security. And the reason that decision is so tough is that your filing age will have a direct impact on the amount of money Social Security pays you each month.

You’re eligible for your complete Social Security benefit at full retirement age (FRA). That age is 66, 67, or somewhere in the middle, depending on when you were born.

But you can also claim Social Security before or after FRA. The earliest age to sign up is 62. And while there’s no official “latest age,” because you can technically file as late as you want, 70 is generally referred to as the latest age to claim benefits because there’s no financial upside to delaying your claim past that point.

You may be thinking of signing up for Social Security once you turn 62. But here are three important things to know first.

1. Claiming benefits early will typically reduce them for life

Technically, all Social Security recipients get a single do-over when it comes to taking benefits. If you file for Social Security at 62 and regret it later, you can undo your filing within a year and get a chance to sign up again later — but only if you repay all of the money in benefits you received, which, for many seniors, is not an easy thing to do.

That’s why, for the most part, when people sign up for Social Security at age 62, they lock in a reduced monthly benefit for life. And that could be a problem if you end up living a long life.

As your savings start to dwindle, falling back on Social Security could become crucial. But if you slash your monthly benefit by filing early, you’ll have that much less protection.

2. Social Security will only replace a small percentage of your former pay to begin with

As just noted, claiming Social Security early will generally result in a smaller monthly benefit for the rest of your life. But you should also know that even your complete monthly Social Security benefit will only replace about 40% of your pre-retirement wages if you earn or earned a typical paycheck.

What this means is that if you file early, you’ll get even less replacement income. And if you don’t have a lot of money saved, that could put you in a position where money in retirement becomes very tight.

3. Filing early could put your spouse in a tough financial position

It’s clear that claiming Social Security at 62 could impact your retirement finances. But also, think about your spouse, if you have one. If they’re a lot younger than you and earned a lot less than you, claiming benefits early could cause them a world of financial hardship.

When Social Security recipients pass away, their spouses are generally entitled to survivor benefits. If you expect your spouse to outlive you and rely on your Social Security benefits in your absence, then you’ll be doing them a disservice by signing up at 62 and locking in smaller monthly checks. But if you wait and lock in larger payments, you’ll leave your spouse with more money to collect once you’re gone.