Filing for Social Security at 62 gives early access to retirement income but comes with permanent benefit reductions.
While it may help those needing immediate income or with health concerns, delaying to full retirement age (66-67) or age 70 can increase lifetime benefits.
This article breaks down the pros, cons, and strategic factors to help retirees make the best Social Security decision. Find out if filing early is right for you!
File for Social Security at 62? Deciding when to start receiving Social Security benefits is one of the biggest financial choices you’ll make. While you can begin collecting at age 62, doing so comes with permanent financial trade-offs. Some retirees need the income immediately, while others may benefit from waiting. So, should you file for Social Security at 62 or delay it for larger monthly payments? Let’s dive deep into the advantages, risks, and long-term implications of early claiming.
File for Social Security at 62?
Filing at 62 has pros and cons. If you need the money or have health concerns, claiming early may be best. But if you can wait, you’ll enjoy larger payments and higher lifetime benefits. Before deciding, evaluate your finances, health, and retirement goals. Consulting a financial planner can also help determine the best strategy for you.
| Factor | Filing at 62 | Filing at Full Retirement Age (FRA) (66-67) | Filing at 70 |
|---|---|---|---|
| Monthly Benefit | ~30% lower than FRA benefit | 100% of FRA benefit | ~32% higher than FRA benefit |
| Lifetime Benefits | More checks, but lower monthly amount | Balanced option | Fewer checks, but highest monthly payout |
| Earnings Limit | Benefits reduced if working & earning above $22,320 (2024) | No reduction | No reduction |
| Best for… | Those needing immediate income, poor health, or short life expectancy | Those who can wait and need a steady balance | Those expecting a longer lifespan and want max benefits |
Understanding Social Security and How It Works
Social Security is a federal retirement program designed to replace part of your pre-retirement income. The amount you receive depends on your highest 35 years of earnings and when you start claiming.
- Full Retirement Age (FRA): 66-67, depending on birth year.
- Primary Insurance Amount (PIA): The benefit you’d receive if you claim at FRA.
- Delayed Retirement Credits: For every year you delay after FRA, your benefit increases by 8% per year (until age 70).
Your Social Security check is permanent—so when you start matters.
The Pros of File for Social Security at 62
1. Immediate Income for Early Retirees
Many people file at 62 because they need the income. If you have no pension, savings, or passive income, claiming early can cover basic expenses.
Example:
- Tom, 62, lost his job unexpectedly.
- He has limited savings and no other income sources.
- Filing at 62 helps him stay afloat without taking on debt.
Tip: If you need the money now, it may make sense to file.
2. More Years of Payments (If You Don’t Live Long)
If you have health issues or a shorter life expectancy, early claiming ensures you collect benefits for as many years as possible.
Example:
- Linda, 62, has a family history of short lifespans.
- If she waits, she may not live long enough to “break even” on delayed benefits.
- By filing early, she ensures she enjoys her retirement income.
Tip: If longevity is uncertain, early claiming might be wise.
3. Spousal & Dependent Benefits May Start Sooner
Filing at 62 allows your spouse or children to claim spousal or dependent benefits based on your record.
If your family depends on your Social Security, this can be a strategic advantage.
The Risks of Filing for Social Security at 62
1. Permanently Reduced Monthly Benefit
The biggest downside of filing early is the 30% permanent cut in benefits. If you live a long time, this means hundreds of thousands lost in potential earnings.
Example:
- Emily’s FRA benefit at 67: $2,000/month
- If she files at 62: Only $1,400/month
- If she waits until 70: $2,480/month
Tip: If you have other income and can wait, your monthly check will be significantly larger.
2. Earnings Limitations (If You Work)
If you file before FRA and still work, your Social Security benefits will be reduced if you earn over $22,320 in 2024. You’ll lose $1 for every $2 earned over the limit.
Example:
- John, 62, earns $40,000/year while receiving benefits.
- Since he earns $17,680 over the limit, he loses $8,840 in Social Security payments.
Tip: If you plan to work, waiting might be better.
3. Lower Survivor Benefits for Your Spouse
If you claim early, your spouse’s survivor benefit will be lower too.
This could hurt them financially after you pass.
Tip: If your spouse depends on your Social Security, delaying might be wiser.
When Should You File? Step-by-Step Decision Guide
File at 62 if:
- You need the money now.
- You have health concerns or shorter life expectancy.
- You don’t plan to work.
- Your spouse has their own strong benefits.
File at FRA (66-67) if:
- You want full benefits without penalties.
- You plan to work part-time.
- You have average life expectancy.
File at 70 if:
- You want the highest monthly check.
- You have good health & longevity in your family.
- Your spouse may rely on your higher survivor benefits.
Frequently Asked Questions (FAQs)
1. Can I start benefits at 62 and increase them later?
No. Once you file, your amount is locked in for life (with cost-of-living adjustments).
2. What happens if I regret filing at 62?
You have two options:
- Withdraw Your Claim (within 12 months) and repay all benefits.
- Suspend Benefits at FRA to earn delayed retirement credits.
3. How much does Social Security increase each year I wait?
Your benefit increases by about 8% per year if you delay past FRA (until 70).
4. Are Social Security benefits taxed?
Yes, up to 85% of your benefits may be taxed if your total income exceeds $34,000 (single) or $44,000 (married).
