62 is the earliest age when you can claim Social Security benefits. If you are eligible, you can enjoy the benefits right away. However, filing your claims at 62 might allow you to retire sooner and enjoy your life while your health won’t restrict you; it could also create a huge financial burden for you if you don’t take the necessary measures.
While it’s easy to see the good side of claiming the benefits, the dire consequences can have a permanent impact on your personal finances. But as soon as you start taking the benefits at 62, for each month you claim before reaching full retirement age (FRA), you will face a permanent reduction.
For example, if you were born in 1960 or later, the full retirement age is 67. In that case, if you start claiming the Social Security benefits at 66 and 1/2, you may not face a massive reduction. However, if your FRA is 67, and you start claiming at 62, it will lower your benefits substantially. In that case, you are looking up to 30% reduction in your monthly checks.
A typical retired person collects close to $2,000 through their Social Security monthly checks. So, a 30% reduction on it means, losing out on $600. That’s a massive hit on your yearly $7,200 checks, assuming you’re only looking up to $2,000 a month. If you are eligible for more than that on your monthly claims, filing at 62 will massively impact your retirement plan.
So, how do you start claiming your benefits at the earliest age but still don’t take a huge hit on your finances? Well, there is a simple way, and that is just to do some calculations on your finances. Make sure that you can manage your long-term retirement expenses on reduced Social Security benefits.
However, don’t just guess your expenses. Do a proper calculation through a look at your bank and asses your various income streams. At the same time, also analyze your credit card statements to have a proper idea about what your various bills cost you.
When should you claim Social Security? The right answer depends on your health, income, and retirement goals. Here’s a breakdown of your options: 📌 Claiming at 62 (Early Retirement) ✅ Get benefits ASAP ✅ Ideal if you need income now ❌ Benefits reduced by up to 30% pic.twitter.com/fz4X3gSefA
— James Ustby (@jamesustby) April 1, 2025
It is very important to note that if you have massive savings and are also eligible for some type of pension, the reduced benefits might not be such a big deal. However, if you are planning to make Social Security your primary income source, filing at 62 could be risky but manageable if you calculate whether it could impact your bills.
There’s another thing to note, filing at 62 will not just result in reduced monthly benefits, but it would also mean less lifetime income. The more money you get as Social Security benefits, the more you might enjoy your retirement years.
Even if you can cover your monthly expenses on reduced benefits, having the money could mean you don’t have to cut back on things.
So, it’s very crucial that you consider everything before claiming your Social Security benefits at 62.
