Claiming Social Security as soon as you turn 62 will give you the most checks over your lifetime. If you collect benefits for 20 years, that’s 240 monthly payments — and some people get even more.
However, there are some downsides to claiming early that you should consider before applying. Here are three key factors to keep in mind:
1. Reduced Monthly Benefits for Early Claiming
The biggest drawback to claiming Social Security early is that it lowers your monthly payments.
The Social Security Administration sets a full retirement age (FRA), which is 67 for most people today. If you start collecting before this age, your checks will be smaller.
You’ll lose about 5/9 of 1% per month for the first 36 months you claim early. If you claim more than three years early, you lose about 5/12 of 1% per month.
That means if your FRA is 67 and you start at 62, you’ll reduce your monthly benefits by 30%.
That said, early claiming isn’t always a bad idea. If you have a shorter life expectancy or need the money to cover essential expenses, starting early could still work in your favor.
2. Smaller Cost-of-Living Adjustments (COLAs)
Social Security benefits usually increase each year to keep up with inflation through cost-of-living adjustments (COLAs).
These adjustments are based on a percentage of your benefit, so claiming early means smaller COLAs in dollar terms.
For example, if your FRA benefit is $2,000 per month, claiming at 62 reduces it to $1,400. If there’s a 3% COLA, the $2,000 benefit would increase by $60, but the $1,400 benefit would only increase by $42. Over time, that gap can add up.
3. Reduced Benefits Due to the Earnings Test
If you claim Social Security before your FRA and continue to work, the earnings test could reduce your benefits.
In 2025, if you’re under your FRA all year, you’ll lose $1 in benefits for every $2 you earn above $23,400.
If you reach your FRA that year, you’ll only lose $1 for every $3 earned over $62,160 before your birthday. In some cases, this could reduce your benefit payments to zero temporarily.
The good news is that once you reach your FRA, the Social Security Administration will adjust your benefits to account for any amounts withheld earlier.
If you expect to keep working, delaying your claim until your FRA can help you avoid this reduction and increase your overall benefit.
Before deciding when to claim Social Security, consider your financial needs, health, and work plans.
While claiming at 62 gives you more checks, waiting could mean larger monthly payments and higher lifetime benefits.
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