Claiming Social Security at 62? 3 Sneaky Rules That Could Come Back to Bite You.

There are a few ways to think about claiming Social Security at 62. You might see the positive in getting the greatest number of checks possible. Or you might see the necessity of claiming early if you're not able to work and you don't have a lot of personal savings to rely on.

It can be the right move for some people, but the choice isn't as cut-and-dried as you might expect. You may have to contend with the following three disadvantages if you choose to apply at 62.

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1. Permanently reduced benefits

The Social Security Administration considers signing up at 62 to be claiming early. It allows you to do so, but you'll face a benefit reduction of up to 30%, depending on your full retirement age (FRA). That's enough to knock a $2,000 monthly benefit down to $1,400 per month.

This benefit reduction is generally permanent and can lead to a smaller lifetime benefit than you may have been entitled to if you'd waited until your FRA or age 70 -- when you qualify for your maximum checks -- to apply.

Smaller checks also lead to smaller cost-of-living adjustments (COLAs). COLAs are a percentage of your checks, so if you're starting with a smaller benefit amount, your checks will increase by a smaller dollar amount. For example, a 2.5% COLA would boost a $2,000 monthly benefit by $50, while it would add just $35 to a $1,400 check.

Claiming Social Security early also reduces the survivors benefit your spouse and other dependent family members could qualify for after you're gone. For this reason, you might consider delaying Social Security at least until your FRA if you don't need your checks to cover your basic expenses today.

2. Inability to claim in the month you turn 62

You must be 62 or older for the entire month to be eligible to claim Social Security for that month. The Social Security Administration considers you 62 for the full month only if you were born on the first or second of that month. If you were born on any other day, you're not eligible for Social Security until the month after your birth month.

To make things even more confusing, you don't receive your checks until the month after they're due. So if you turn 62 on June 15, 2025, for example, the first month you'd be eligible for checks would be July 2025, and you'd get that payment in August 2025.

Payments go out on either the second, third, or fourth Wednesday of each month, depending on your birthday, so you could have a long wait for your first check if you plan to apply as soon as you can. Make sure you understand when you'll actually receive your first check, and have a plan to cover your expenses in the meantime.

3. The earnings test

The earnings test reduces benefits for those earning more than a certain amount from their jobs while claiming Social Security under their FRA. In 2025, you lose $1 for every $2 you earn over $23,400 if you're under your FRA all year. If you'll reach your FRA this year, you only lose $1 for every $3 you earn over $62,160 if you earn this much before your birthday. It's possible the earnings test could reduce your checks to zero in some months.

The good news is when you reach FRA, the Social Security Administration increases your checks to make up for what it withheld before. This is a permanent benefit increase, and it could be substantial for some workers. Once you reach your FRA, you won't have to worry about losing any more money due to the earnings test, regardless of how much you earn from your job.

None of these factors are reasons not to claim Social Security at 62 if you believe that's the right call for you. It can be a smart choice for those with little savings and those with short life expectancies. But make sure you're prepared for these trade-offs before you submit your application form.

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