For many Americans, the idea of claiming Social Security as soon as they turn 62 is tempting. After all, you’ve worked hard, and the thought of getting extra money in your pocket sounds great. But before you make that decision, it’s important to consider the long-term impact.
Here are three major reasons why I’m holding off on claiming Social Security at 62—and why waiting might be a smart move for you too.
1. Smaller Checks for Life
One of the biggest downsides to claiming Social Security early is that your monthly benefits are permanently reduced. The Social Security Administration (SSA) calculates your payment based on when you claim, and if you take it at 62, you could lose up to 30% of your full benefits.
For example, if your Full Retirement Age (FRA) is 67 and you start collecting at 62, your check will be significantly smaller than if you waited. And that reduction doesn’t go away—it stays that way for life. That’s a big price to pay just to get your benefits a little sooner.
2. Waiting Means Bigger Payments
If you hold off on claiming Social Security past your FRA, you’ll actually get rewarded with bigger monthly checks. For every year you wait, your benefits grow by about 8% until you reach 70. That means if you delay until 70, you could be looking at a payment that’s 24% higher than what you’d get at 67—and much more than if you claimed at 62.
Think of it this way: would you rather have smaller checks for decades or wait a few years and collect significantly more each month for the rest of your life? The math speaks for itself.
3. A Safety Net for the Future
Another reason to delay Social Security is simple: you don’t know how long you’ll live. Thanks to modern medicine, people are living longer than ever, which means your retirement savings need to last.
By waiting to claim, you ensure a larger check later in life, when you might need it the most. If you’re married, delaying your claim could also increase the survivor benefits your spouse receives if you pass away first.
Retirement is unpredictable, and a bigger Social Security check can provide much-needed financial security down the road.
Bottom Line
Claiming Social Security at 62 might seem like a good idea at first, but it comes with serious financial trade-offs. Smaller monthly payments, lost growth potential, and the risk of outliving your savings are all reasons to think twice.
If you can afford to wait, delaying Social Security could lead to a much more comfortable and secure retirement. So before you rush to claim at 62, take a step back and consider the long-term benefits of waiting—you might thank yourself later.
