Claiming at 62 will result in a major benefit reduction.
The age you begin claiming Social Security will permanently affect your benefit amount, so it’s a decision to be made carefully.
Age 62 is the earliest you can file, and it’s also a popular time to begin claiming — with roughly one-quarter of retirees taking benefits at this age, according to 2022 data from the Social Security Administration.
While filing early can help you get a jump-start on retirement, it will also shrink your monthly payments substantially. Filing as early as possible will result in a reduction of up to 30% compared to what you’d receive at your full retirement age. Here’s what the average benefit looks like at age 62.
The average benefit is less than you might think
The average retired worker, regardless of age, collects just over $1,900 per month in benefits, according to the Social Security Administration.
However, those who claim benefits early receive substantially less. According to the most recent data released by the Social Security Administration in December 2023, the average benefit among 62-year-old retired workers is just $1,298 per month.
Now, this doesn’t necessarily mean that claiming at 62 is the wrong move. There are situations where filing early is a fantastic decision, especially if you’re retiring early or battling health issues. But if you’re looking to maximize your monthly income, delaying benefits could be a better choice.
The longer you wait to claim (up to age 70), the more you’ll collect each month. The average benefit at age 70 is around $2,038 per month — a whopping $740 more per month than the average at 62. If money is going to be tight in retirement, delaying claiming can make your senior years far more comfortable.
There’s no wrong time to take Social Security, but knowing how your decision will affect your finances is critical. Claiming at 62 will reduce your payments, but by planning accordingly, it could still be a strong choice for your retirement.
WASHINGTON – Congress on early Saturday passed a bill that would increase Social Security benefits for public sector workers.
The Social Security Fairness Act, would eliminate the Windfall...
Investing in the S&P 500 (^GSPC 1.09%) has historically been a great way for someone to grow their wealth. As a benchmark for the broad market, the index...
Employee access to a payroll deduction plan improves retirement security, yet about half of working Americans lack access to such a plan, according to...
