Why More Americans Are Claiming Social Security at 62, Even Though It Means Thousands Less Per Year for Life
For millions of Americans approaching retirement, age 62 represents a powerful milestone. It’s the earliest age you can begin collecting Social Security retirement benefits. And lately, more people are choosing to file as soon as they become eligible, even though doing so can permanently reduce their monthly checks for the rest of their lives.
On paper, waiting often pays. For someone whose full retirement age is 67, claiming at 62 can reduce monthly benefits by as much as 30 percent. That reduction isn’t temporary. It’s locked in for life, aside from annual cost-of-living adjustments.
So why are more Americans deciding to take the smaller check?
The Math Behind Claiming Early
Social Security calculates benefits based on your highest 35 years of earnings and the age at which you file. If your full retirement age is 67 and your benefit at that age would be $2,000 per month, claiming at 62 could drop it to roughly $1,400 per month.
That’s a difference of about $600 per month, or $7,200 per year. Over a 20-year retirement, that gap can total well over $100,000 in reduced lifetime benefits.
On the flip side, delaying past full retirement age increases benefits by about 8 percent per year up until age 70. Someone eligible for $2,000 at 67 could receive around $2,480 per month at 70.
The financial trade-off is significant.
Why Some Americans Are Filing at 62 Anyway
Despite the math, several factors are pushing people to claim early.
1. Health concerns.
Not everyone expects to live well into their 80s or 90s. Some workers choose to collect earlier because they worry they may not live long enough to benefit from delaying.
2. Job loss or limited work options.
Older workers can face layoffs, health challenges, or difficulty finding new employment. Without steady income, Social Security at 62 may feel like the only realistic option.
3. Rising costs.
Inflation, higher housing expenses, and medical costs are pressuring near-retirees. For households without substantial savings, waiting may not seem financially possible.
4. Fear about the future of Social Security.
There is ongoing discussion about the long-term outlook of the Social Security trust fund, currently projected to face funding pressure in the early 2030s if no legislative changes are made. While benefits are not expected to disappear, uncertainty can influence personal decisions.
The Trade-Off Many Don’t Realize
The decision to claim at 62 doesn’t just reduce monthly income; it can also affect:
- Survivor benefits for a spouse
- The amount of income subject to taxation
- Long-term retirement budgeting
For married couples, claiming strategies can significantly influence lifetime household income. A lower benefit at 62 may also mean less flexibility later if medical costs rise or other expenses increase.
When Claiming at 62 Can Make Sense
Financial planners often say there is no universal “right” age. Claiming early can be reasonable if:
- You have serious health concerns
- You need income immediately
- You expect to continue working part-time and understand earnings limits
- You have other retirement savings to supplement your income
However, workers under full retirement age who continue earning above certain annual limits may temporarily see benefits reduced until they reach full retirement age.
A Personal Decision With Long-Term Impact
Choosing when to claim Social Security is one of the most consequential financial decisions retirees make. Once benefits start, the reduced amount generally remains for life.
For Americans nearing 62, the key question isn’t just “Can I claim?” It’s “Should I?”
Understanding how early filing affects lifetime income, potentially locking in thousands less per year, can help ensure the decision aligns with long-term financial needs rather than short-term pressure.
As economic uncertainty and rising costs continue to shape retirement planning, more Americans are opting to take benefits early. But for many, the long-term trade-off may be larger than expected.
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