Deciding when to claim Social Security benefits is one of the biggest financial choices retirees face. With 2025 underway, millions of Americans are asking: Should I claim early at 62, or hold out until 70 for a bigger payout? The difference could mean thousands of dollars over your lifetime.
Who Qualifies for Social Security?
To be eligible for Social Security benefits, you must have earned at least 40 work credits. In 2025, a single credit is earned for every $1,810 in wages, up to a maximum of four per year. That means you’ll need at least ten years of work history to qualify.
Claiming Social Security at 62: The Pros and Cons
At 62, you become eligible to start receiving Social Security. However, claiming at this age comes with a catch—a permanent reduction in your monthly benefits. If your full retirement age (FRA) is 67 (for those born in 1960 or later), taking benefits at 62 will reduce your monthly check by about 30%.
For example, if your FRA benefit is $1,000 per month, claiming at 62 would shrink it to just $700. While you’ll receive benefits for a longer period, you’ll be getting significantly less each month.
Who Should Consider Claiming Early?
- Those who need immediate income.
- People with health concerns or a shorter life expectancy.
- Workers who do not plan to continue working past 62.
Waiting Until 70: Bigger Checks, But Is It Worth It?
For those who can afford to wait, delaying Social Security past your full retirement age can be financially rewarding. Each year you wait beyond your FRA, your benefits grow by about 8%—maxing out at age 70.
If your full benefit at FRA is $1,000, waiting until 70 would increase it to $1,240. That’s a 24% increase, making it a great option for those who expect to live longer and want a bigger monthly check.
Who Should Consider Waiting?
- Those who are in good health and expect a long retirement.
- Retirees with other sources of income who don’t need Social Security right away.
- Married individuals who want to increase survivor benefits for their spouse.
The Earnings Limit: What You Need to Know
If you claim benefits before your full retirement age and continue to work, your Social Security payments could be temporarily reduced. In 2025, the earnings limit for early claimers is $23,400. If you earn more than that, Social Security will withhold $1 for every $2 you earn above the limit. Once you reach full retirement age, this rule no longer applies.
Making the Right Choice for You
There’s no one-size-fits-all answer when it comes to Social Security. Some people need the income early, while others can afford to wait for bigger checks. Consider your financial situation, health, and long-term plans before making a decision.
For personalized guidance, consulting a financial advisor or using Social Security’s online calculators can help determine the best strategy for your retirement.
Would you claim at 62 or wait until 70? Let us know your thoughts!
