Don’t Claim Social Security at 62 Before Doing This

By Maurie Backman Published Apr 8, 12:58PM EDT

Key Points

Age 62 is the earliest age to sign up for Social Security.
While it may be nice to have your benefits start sooner, they’ll also be reduced.
Run the numbers to make sure a slashed Social Security benefits allows you to cover your retirement expenses.

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Don’t Claim Social Security at 62 Before Doing This — © J.J. Gouin / Shutterstock.com

There’s a reason age 62 is an important one in the context of retirement. It’s the earliest age people can sign up for Social Security.

If you’re eligible for Social Security, you may be inclined to file for benefits right away. Doing so might allow you to retire sooner, or at least enjoy the money at a time in your life when your health might allow you to do more with it.

But you should know that filing for Social Security at 62 could mean facing serious financial consequences for the rest of your retirement. So it’s important to know what you’re getting into.

Are you equipped to withstand a reduction in your Social Security benefits?

It’s easy to see the appeal of claiming Social Security early. But you should know that for each month you take benefits before reaching full retirement age (FRA), you face a permanent reduction.

If you were born in 1960 or later, FRA is 67. And in that case, claiming Social Security at, say, 66 and 1/2 may not lower your benefits so substantially.

But if your FRA is 67 and you claim Social Security at 62, you’re looking at about a 30% reduction in your monthly checks. That could have a huge impact on your retirement finances.

The typical retired worker on Social Security today collects close to $2,000 a month. Reducing that sum by 30% means taking a roughly $600 hit.

But that’s $7,200 a year. And that assumes you’re only looking at a $2,000 monthly benefit. If you’re eligible for more, filing at 62 will cost you even more.

Run the numbers before you move forward

Claiming Social Security at 62 is not automatically a bad idea. But before you make that decision, do some calculations to make sure you can manage your long-term retirement expenses on a reduced benefit.

And don’t just guess at those expenses. Take a look at your bank and credit card statements to see what your various bills cost you. Then, assess your various income streams.

If you have plenty of savings and are also in line for some type of pension, a reduced Social Security benefit may not be such a big deal. But if you expect Social Security to be your primary income source during retirement, then you’ll need to run some careful calculations to make sure a reduced benefit won’t render you unable to cover your bills.

Plus, do keep in mind that the more money Social Security pays you each month in retirement, the more you might enjoy your senior years. Even if you can cover your basic costs on a reduced monthly benefit, larger checks each month could spell the difference between having the money to do the things you love and having to cut back.

Remember, too, that if you think you’ll live a longer life, filing for Social Security at 62 may not just result in less monthly income — it could also leave you with less lifetime income. So it’s important to consider the decision carefully before making it official.

About the Author Maurie Backman →

Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and CNN Underscored.