Age 62 is the earliest you can start collecting Social Security retirement benefits, and it remains one of the most popular choices. But the decision comes with a price: for anyone born in 1960 or later, filing at 62 means a monthly check up to 30% smaller than the one you would get at full retirement age, and the cut lasts for the rest of your life.
The question is more pressing than ever because Americans born in 1960 will be the first to reach a full retirement age of 67 in 2027. We explain what changes for that generation elsewhere. Here we break down how the reduction is calculated and what you gain by waiting.
How does the Social Security reduction work?
The Social Security Administration (SSA) calculates your full benefit, called the primary insurance amount, based on your 35 highest-earning years. That is what you receive if you claim exactly at full retirement age.
If you claim earlier, the SSA reduces that amount for every month you are short of full retirement age:
- 5/9 of 1% for each of the first 36 months before full retirement age.
- 5/12 of 1% for each additional month beyond those 36.
For someone whose full retirement age is 67, claiming at 62 means 60 months early. That adds up to a 20% cut for the first 36 months and another 10% for the remaining 24, for a total reduction of 30%.
What does that look like in dollars?
Imagine a worker whose full benefit at 67 would be $2,000 a month. These are the amounts that worker would receive depending on the claiming age:
- At 62: $1,400 a month (70% of the full benefit).
- At 67: $2,000 a month (100%).
- At 70: $2,480 a month (124%).
The gap between filing at 62 and at 70 in this example is $1,080 a month. Future cost-of-living adjustments, such as the 3.6% increase coming in January 2027, are applied as a percentage, so the difference grows over time in dollar terms.
Why waiting until 70 pays more
For every year you delay past full retirement age, the SSA adds delayed retirement credits of 8% a year, up to age 70. After that there is no extra benefit for waiting.
That is also the only way to approach the highest possible checks. The maximum benefit for a worker retiring at full retirement age will be $4,188 a month in 2027, according to the SSA. Read more about who can qualify for the maximum benefit.
When does claiming at 62 make sense?
There is no one-size-fits-all answer. Filing early can make sense if you have health problems, need the income right away or have no other savings to bridge the gap. Using the example above, the person who waits until 67 needs until about age 79 to come out ahead in total dollars received.
Spouses should also run the numbers. A spousal benefit claimed at 62 is reduced to 32.5% of the worker’s full benefit, instead of the 50% available at full retirement age.
What if you keep working?
If you claim before full retirement age and continue to work, the earnings test may temporarily withhold part of your benefit. In 2027, the SSA will withhold $1 for every $2 you earn above $25,560. In the year you reach full retirement age, it withholds $1 for every $3 above $67,920. We explain the details in our guide to the 2027 earnings test limits.
That money is not lost. Once you reach full retirement age, the SSA recalculates your benefit to credit the months that were withheld.
To see your own estimates at every age, sign in to your my Social Security account or use the SSA’s early retirement calculator.
