Additional Coverage:
- Here’s the Average Social Security Benefit of 62-Year-Old Americans (How Do You Compare?) (financebuzz.com)
Turning 62? Here’s What Claiming Social Security Early Really Means for Your Wallet
For many Americans, turning 62 marks a significant milestone: the moment Social Security benefits are no longer a distant concept but a tangible, monthly check within reach. While some eagerly anticipate claiming, others grapple with the potential financial implications. What does this pivotal age truly mean for your retirement income?
At 62, you officially get to choose when your retirement begins, and the numbers involved are crucial.
What Happens When You Claim Social Security at 62?
Age 62 is the earliest most individuals can begin collecting Social Security retirement benefits. The trade-off is straightforward yet substantial: claiming early results in a permanent reduction to your monthly payment.
Social Security calculates your benefit based on your “full retirement age,” which typically falls between 66 and 67 for today’s retirees. If you opt to claim at 62, your benefit will see a reduction of approximately 25% to 30%, depending on your specific birth year. This reduction is not temporary; it follows you for the rest of your life.
The Average Social Security Benefit for 62-Year-Olds
According to the latest data from the Social Security Administration, retirees in their early 60s receive notably smaller checks compared to older beneficiaries. On average, a 62-year-old beneficiary receives $1,298.26 in monthly benefits. Breaking this down by gender, men average $1,439.94, while women receive $1,167.07.
To put this in perspective, the average Social Security benefit for all retired individuals in 2026 is projected to be $2,071 per month. This higher figure reflects the inclusion of retirees across all ages and income brackets.
Why Your Benefit Can Vary So Much
Social Security benefits are highly individualized. Two individuals, both 62, can see vastly different amounts hit their bank accounts. Your benefit is primarily determined by:
- Your highest 35 years of earnings
- How your earnings compared to the Social Security wage base
- Your precise claiming age
- The consistency of your work history
Someone with a steady career in a higher-paying field will likely receive significantly more than someone with employment gaps or lower lifetime earnings.
Just How Much Smaller Is a 62-Year-Old’s Check?
The reduction for claiming at 62 is not insignificant. If your full retirement age benefit would have been $2,000 per month, claiming at 62 could reduce it to roughly $1,400 to $1,500.
This translates to an annual cut of approximately $6,000 to $7,000, every year, for as long as you receive benefits. Over a lengthy retirement, this can easily accumulate to a six-figure sum in total lifetime benefits, depending on your lifespan. The longer you live, the lower your total lifetime benefit will be with an early claim.
62 vs. Waiting Until 67 or 70: A Significant Difference
Delaying your claim can make a substantial difference:
- Claiming at full retirement age provides 100% of your earned benefit.
- Waiting until 70 increases your benefit by approximately 8% per year after your full retirement age.
- Claiming at 62 locks in the smallest possible check.
For many, the difference in monthly income between claiming at 62 and 70 can be 40% or more. This represents one of the most significant guaranteed “raises” available in retirement planning.
Why So Many Still Claim at 62
Despite the clear financial implications, a large number of Americans still claim their benefits as soon as they become eligible. These decisions are typically driven by practical circumstances rather than theoretical optimization. Common reasons include:
- Job loss or health challenges
- Burnout or physically demanding work
- Insufficient savings to delay
- A desire for income certainty sooner
For many households, the decision is less about maximizing benefits and more about immediate necessity or peace of mind.
The Role Your Spouse Plays
If you are married, the claiming decision becomes more intricate and often more critical. Spousal and survivor benefits are partly based on the higher earner’s record.
If the higher-earning spouse claims early, it can reduce not only their own check but also the benefit their spouse may eventually depend on if they outlive them. In such cases, delaying a claim can serve as a form of longevity insurance for the surviving spouse.
Taxes and Medicare: Don’t Forget These Factors
Social Security benefits don’t exist in a vacuum. Your benefits may be taxable depending on your total income, and it’s important to remember that Medicare does not automatically begin at 62.
Medicare generally starts at age 65, meaning if you retire at 62, you may need to cover health insurance costs out-of-pocket for a few years. This expense alone can significantly impact whether early claiming genuinely helps your budget or simply addresses one financial gap while creating another.
How to Get Your Personalized Benefit Estimate
The most reliable way to determine your personal Social Security numbers is to check your account at SSA.gov. There, you can access:
- Your estimated benefit at 62, full retirement age, and 70
- Your complete earnings record
- How different claiming ages will alter your projected income
These estimates are based on your actual work history, making them far more valuable for real-world planning than general averages.
The Bottom Line
Claiming Social Security at 62 means accepting a permanently smaller monthly check, often in the low-to-mid $1,000s, depending on your work history. For some, this immediate income is a necessity. However, for others, waiting even a few years could significantly increase lifetime benefits and reduce the strain on personal savings later in life.
While Social Security benefits are adjusted for inflation annually, these adjustments are based on a percentage of your initial benefit. Therefore, a higher starting check means those cost-of-living increases will compound more over time, providing greater long-term income security for your retirement.