3 Reasons Claiming Social Security at 62 Could Backfire

Age 62 has long been a popular time to claim Social Security. It's the earliest age you can take benefits, and for many people, it's a path toward early retirement.

But while claiming Social Security at 62 makes sense in some situations, it's a move you might also regret. Here are three reasons why filing for benefits as early as possible might backfire on you.

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1. You'll face significantly reduced checks

Once you reach full retirement age, which is 67 for anyone born in or after 1960, you can collect your Social Security benefit without a reduction. And that benefit is based on your individual earnings history.

If you file for Social Security at 62, your benefit will be reduced by about 30%. And that reduction generally stays with you for life. Not only does that mean smaller checks to begin with but also a smaller boost each time Social Security gets a cost-of-living adjustment (COLA).

2. You could reduce a spouse's survivor benefits

If you're married and are the higher earner in your household, filing for Social Security at 62 doesn't just mean shrinking your own benefits. It could also sentence your spouse to smaller survivor benefits.

If you pass away before your spouse, they'll be eligible for survivor benefits equal to the monthly checks you got to collect. The less you receive, the less your spouse receives, which may be a problem if you don't have much in retirement savings and expect your spouse to outlive you by many years.

3. You'll be subject to an earnings test if you continue to work

While some people claim Social Security at 62 to escape the workforce, others use the opportunity to continue working part-time. If you go the latter route, you'll be subject to Social Security's earnings test, which applies to people who work while collecting benefits before reaching full retirement age.

Under the earnings test, wages exceeding a certain threshold can result in withholding Social Security benefits. The amount you can earn before that happens changes annually. In 2026, if you don't reach full retirement age by the end of the year, you'll have $1 in Social Security withheld per $2 of earnings above $24,480.

Benefits that are withheld in this situation aren't lost forever. Rather, your monthly checks are boosted at full retirement age, as that money is returned to you over time.

But if you intend to keep working, you may want to hold off on claiming Social Security at 62 if you expect to earn a substantial amount. You could conceivably have your entire Social Security check withheld if your wages are high enough.

Filing for Social Security at 62 is not a poor choice off the bat. It can make sense when you have major health issues and don't expect a long lifespan, or if you have a job that's harming your health that you desperately need to escape. The key, rather, is to be aware of the potential pitfalls that can come with an early claim so you can make a more informed decision.

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