Claim Social Security at 62 or Wait: Here’s How to Decide

Claim Social Security at 62 : Deciding whether to claim Social Security at 62 or wait is one of the most consequential financial choices you’ll ever make. Your filing age affects your monthly checks for the rest of your life, and because Social Security is protected against inflation, this one decision will shape your long-term financial security as much as any investment you’ve made.

Below is a clear, experience-grounded guide to help you make the right call — not based on rules of thumb, but on how real households actually use, need, and benefit from Social Security.

Why Your Filing Age Matters More Than You Think

The mechanics of reduced vs. increased benefits

Here’s what happens when you choose your filing age:

• At 62: You receive about 25%–30% less than your full benefit (depending on your birth year).
• At Full Retirement Age (67 for people born in 1960 or later): You receive 100% of your scheduled benefit.
• At 70: You receive roughly 124% of your FRA benefit due to delayed retirement credits.

These adjustments stay with you for life. They also determine the baseline for survivor benefits, spousal benefits, and future cost-of-living adjustments (COLAs).

How claiming age affects lifetime income, not just monthly checks

Many retirees focus only on “how much I can get right now.” The real metric is total lifetime income.
For example:

• If you live to 75, early claiming may pay out more over your lifetime.
• If you live to 85 or beyond, delaying can significantly increase the total you receive.

The challenge is that life expectancy isn’t predictable — so your claiming decision needs to be grounded in probabilities, financial risk exposure, and your overall retirement picture.

Reasons Claiming Social Security at 62 Is the Right Move

Claiming early isn’t wrong — but it is wrong to do it without understanding the consequences. In certain situations, claiming at 62 is not only reasonable but financially strategic.

When job loss or income pressure makes early benefits a safety valve

If you’re out of work at 62 and have no reasonable prospects of new employment, early Social Security can reduce the need to rely on:

• credit cards,
• personal loans,
• 401(k) withdrawals, or
• home equity borrowing.

Avoiding high-interest debt while unemployed

Using a credit card at 25% interest for basic living expenses can create a debt spiral that ruins retirement security. If early Social Security fills that gap, it becomes a stabilizer, not a compromise.

When poor health or shorter life expectancy changes the math

If you have serious health concerns or a family history of shorter life expectancy, claiming early can maximize your lifetime benefits. A reduced monthly check is less impactful when your expected collection window is shorter.

What the top retirement planners often say: “Social Security is longevity insurance.”
If longevity isn’t likely, the insurance is less valuable — and the cash flow becomes more important.

When markets are down and you want to protect your portfolio

This is the most under-discussed reason to claim early.

If you retire at 62 during a bear market, withdrawing heavily from your IRA or 401(k) can lock in losses. This is called sequence-of-returns risk — early losses hurt more because they compound over time.

Why early withdrawals during a downturn are dangerous

Example: A 20% market drop at the start of retirement can reduce lifetime portfolio income by up to 40%.
Claiming Social Security at 62 can reduce withdrawals enough to allow your investments time to recover.

When part-time work bridges the gap

Some retirees use early benefits plus part-time work to build a comfortable income floor.
You can work while collecting Social Security before full retirement age, but you need to know about the earnings test:

• In 2025, if you earn above the annual limit, benefits may be temporarily withheld.
• After full retirement age, those withheld benefits get recalculated, so they’re not permanently lost.

For many households, this trade-off is worth it.

Reasons Waiting Until Full Retirement Age or 70 Creates Better Outcomes

Longevity and breakeven math

The “breakeven age” — when waiting results in more cumulative income — is usually around 78–80.
If you expect to live past that, waiting becomes a strong financial move.

And with medical advances, many retirees underestimate their lifespan.
A healthy 62-year-old today has a good chance of living into their 80s or 90s.

Still working at 62? The earnings test can shrink your checks

If you’re earning a full salary at 62, claiming early usually doesn’t make sense:

• Exceeding the earnings limit means losing some benefits temporarily.
• You might be reducing your future monthly check unnecessarily.
• The withheld months make early filing less advantageous.

Low retirement savings and the need for higher guaranteed income

If your investments are modest and you’ll rely heavily on Social Security for expenses like:

• housing,
• healthcare,
• utilities,
• food,

… then you want those checks to be as large as possible.
Waiting increases your “income floor,” reducing the pressure on your investments.

When you’re married and you’re the higher earner

This is one of the most important — and misunderstood — parts of claiming strategy.

The higher earner’s benefit sets the survivor benefit

If you pass away first, your spouse receives the larger of the two benefits.
So if you’re the higher earner and you claim early:

• Your spouse may be stuck with a permanently reduced survivor benefit.
• Waiting until 70 not only increases your lifetime benefit — it protects your spouse.

For many couples, this factor alone is worth delaying.

How to Decide — A Practical Framework That Works for Real Households

Here is the decision-making framework top retirement planners use.

1. Forecast life expectancy realistically

Don’t default to “nobody in my family lived past 70.”
You are living in a different medical era with different habits and treatments.

Use these inputs instead:

• your health today
• health history
• lifestyle choices
• access to medical care
• family trends, but not as a sole factor

2. Assess your cash-flow needs

Ask:

• Do I need income right now?
• If yes, can I get it from work, savings, or investments?
• If not, would early Social Security keep me from taking harmful debt or withdrawals?

3. Understand your dependence on withdrawals

If early claiming allows your:

• IRA
• 401(k)
• taxable accounts

…to grow longer, that can outweigh the cost of reduced benefits.

4. Consider taxes, Medicare, and spousal planning

Taxes matter:

• Social Security can be up to 85% taxable depending on income.
• Withdrawals from retirement accounts can trigger higher Medicare premiums (IRMAA).
  The right claiming age can reduce these costs when sequenced correctly.

5. Run the breakeven analysis in plain terms

Here’s the simplest rule of thumb:

• Expect to live past 80 → waiting often wins.
• Expect to live mid-70s or less → early claiming often wins.
• Expect to live uncertain or average → examine cash-flow needs and spouse benefits.

Common Myths That Lead Retirees to Choose Poorly

“Social Security will run out, so I should grab it now.”

Social Security may face funding adjustments, but it will not disappear — and current proposals aim to protect existing beneficiaries. Claiming early purely from fear often leads to smaller lifetime benefits unnecessarily.

“You’re losing money if you don’t claim right away.”

Waiting isn’t lost money — it’s a trade of short-term income for guaranteed higher lifelong income. In many cases, waiting is the better investment.

“Benefits stop growing at full retirement age.”

Not true.
Benefits grow 8% per year from FRA to 70 due to delayed retirement credits.