Claiming Social Security as soon as it becomes available seems like a good choice. At 62, many seniors feel relieved to finally tap into the program after decades of having taxes deducted from their paychecks.
For many retirees, uncertainty around health, job stability, market volatility, or fears about future benefit cuts can make early claiming feel like the safest move, even though it could be a surprising retirement mistake. While starting benefits at 62 may feel like a smart money move, it actually is the worst age to claim Social Security for most retirees.
Learn how benefits are calculated, how much you’ll lose by claiming early, and the opportunity cost of not waiting until age 70.
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The age that often costs the most: 62
Age 62 is the earliest possible age to claim Social Security retirement benefits. It is also the worst age to claim Social Security benefits for most seniors. That is not because claiming early is “wrong,” but because it permanently locks in the lowest possible monthly benefit amount.
Not only will your benefits be reduced by up to 30%, but you’ll miss out on higher cost-of-living adjustments (COLA) throughout retirement.
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How Social Security benefits are calculated
Social Security is based on the concept of full retirement age, which is between 66 and 67 for most current retirees. Your actual full retirement age depends on the year you were born.
Benefits claimed at full retirement age are paid at 100% of the calculated amount. If you claim sooner, your benefits are cut, and if you delay benefits, you’ll receive a higher payout.
When benefits are claimed at age 62, they are permanently reduced by up to 30%. For example, if your full retirement benefit is $2,000 per month, your benefits shrink to around $1,400 per month if you start claiming at 62.
Why you’ll lose thousands if you claim early
A $600 reduction per month is a lot to lose out on in retirement. Not only does this amount add up quickly, but future COLA increases are smaller. The actual percentage increase is the same, but the dollar amount is smaller because of that 30% reduction.
Consider a middle-class retiree who lives 25 years after claiming. $600 less per month adds up to $7,200 less per year and $180,000 less over the span of 25 years.
When you factor in COLA increases, the total lost could easily exceed $200,000. For most retirees, a loss of $200,000 in retirement income is devastating to their retirement plan.
Why waiting to claim Social Security pays off
Retirees who are able to delay Social Security benefits even longer are rewarded handsomely. After full retirement age, Social Security benefits grow by about 8% per year until age 70. For retirees who reach full retirement age at 67, this adds up to an increase of 24% in their monthly benefits.
Someone eligible for $2,000 at full retirement age at 67 years old would receive $2,480 per month by waiting until age 70. If you’re able to wait until age 70 to start claiming Social Security, your monthly benefits will be 77% higher than if you claimed early at age 62.
How claiming at 62 affects spousal and survivor benefits
Claiming early reduces your benefits. But did you know that it can also reduce benefits paid to a spouse or surviving partner? Survivor benefits are typically based on the amount the deceased was receiving in retirement or what you are eligible to receive upon their death.
By locking in a lower benefit at 62, the surviving spouse may receive thousands less per year for the rest of their life. This loss of income could further derail their retirement plans, compounding the loss of your benefits and companionship.
Why regret is common among 62-year-old retirees
Many retirees who claim early do so assuming a shorter lifespan or lower expenses. It’s often easy to focus on the here and now while worrying about an unknown future later. While the average U.S. life expectancy at birth is 78.4 years, at age 62, you can expect to live another 19 to 22.5 years, on average. That is age 81 for men and 84.5 for women.
As people live longer and health care, housing, and everyday costs rise, reduced Social Security benefits can make it harder to pay bills in retirement. Social Security decisions are permanent, so if you claim Social Security early, you are locking in reduced benefits for the rest of your life.
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Bottom line
Age 62 is the worst time to claim Social Security for most retirees. It is an expensive choice that permanently reduces the monthly income for you and your spouse if they rely on your benefits. Not only are your monthly checks smaller, but the annual COLA increases will be smaller as well compared to those who waited longer.
Understanding how claiming age shapes lifetime income is critical when planning for retirement, including when to start collecting Social Security benefits.
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