Claiming Social Security early sounds tempting, but how much does it actually cost you each month? Thousands of Americans consider this question each year, and understanding the real numbers could help you avoid major financial surprises. Here’s what you need to know.
The Basics of Claiming Early
You can start receiving Social Security retirement benefits as early as age 62. However, there’s a catch: you’ll receive less money every month compared to waiting until your full retirement age (FRA). For anyone born in 1960 or later, the FRA is 67 years old. If you claim benefits at 62, your monthly check will be reduced by about 30%.
Here’s how the reduction is calculated:
- For the first 36 months early, you’ll lose 5/9 of 1% per month.
- For any months beyond that, the reduction increases to 5/12 of 1% per month.
If your full retirement benefit at age 67 is $1,000, you’ll only get about $700 per month if you start at 62. This reduction is permanent—there’s no way to increase it later except for small annual cost-of-living adjustments (COLA).
What’s the Average Benefit for Early Claimers?
As of late 2024, the average monthly Social Security payment for retirees was around $1,925. However, that average includes people who waited until full retirement age and beyond. If you retire early at 62, your benefit will likely be lower unless you had a long history of high earnings.
For example, many early retirees receive monthly payments between $800 and $1,500, depending on their lifetime income.
Factors That Impact How Much You’ll Get
Several key factors influence your Social Security benefit amount:
- Lifetime Earnings: Social Security benefits are based on your 35 highest-earning years. If you had gaps or low-income years, your benefit will be lower.
- When You Claim: Claiming at 62 triggers the largest reduction, while waiting until 70 gives you delayed retirement credits and a bigger check.
- Inflation Adjustments (COLA): Social Security payments increase annually to keep up with inflation. For example, a 2.5% COLA adjustment took effect in January 2025.
Should You Claim Early? Key Things to Consider
Deciding when to claim Social Security is a personal choice, but it’s important to think long-term. Here are some questions to ask yourself:
- How long do you expect to live? If you’re in good health and expect to live into your 80s or beyond, waiting could mean more total lifetime benefits.
- Will you continue working? If you claim early and keep working, your benefits may be reduced if your earnings exceed certain limits.
- Do you need the money now? For some, immediate financial needs outweigh the long-term reductions. Just be sure you understand what you’re giving up.
The Bottom Line
Claiming Social Security at 62 can give you immediate access to funds, but it comes with lasting consequences. The reduced monthly check could make a significant difference, especially as you age. Before making a decision, consider speaking with a financial advisor to ensure you’re making the best choice for your future.
