# The Hidden Costs of Claiming Social Security Early

> Starting benefits too soon or too late can cost you considerably, but the right choice depends on your unique situation.
- Title: The Hidden Costs of Claiming Social Security Early · Kiplinger
- Summary: Starting benefits too soon or too late can cost you considerably, but the right choice depends on your unique situation. Social Security timing isn't just…
- Keywords: social security, retirement planning, early retirement, social security benefits, financial planning, cola, required minimum distributions, taxation, retirement age, financial adviser, break-even analysis, Hidden
- Source: Kiplinger — https://kiplinger.com/retirement/social-security/claim-social-security-early-or-wait
- Published: 2026-09-16T14:00:00+00:00
- Read time: 2 min
- Topics: social security, retirement planning, early retirement, social security benefits, financial planning, cola, required minimum distributions, taxation, retirement age, financial adviser, break-even analysis
## One third claim at 62
Nearly a third of people claim Social Security as soon as they turn 62. This permanently reduces their monthly checks by 30%.
## Waiting pays off big
If you wait until 70 to claim, you can increase your checks by 8% for every year you delay past your full retirement age.
## Job loss forces early claims
People in their late 50s or early 60s who suddenly lose their jobs often need to claim Social Security early for financial survival.
## Serious illness changes the math
If you receive a diagnosis that may cut your life short, it might make more sense to start benefits now and use that money immediately.
## 10% wait until 70
About 10% of people delay claiming until age 70, gaining an additional 8% in their checks for each of the three years they waited.
## Market crashes trigger panic
If the market drops 40% right as you retire, you might panic and claim early. But if it recovers quickly, you've permanently lost extra income.
## Break-even analysis isn't enough
Many people think it's just about timing: claim early and risk less lifetime money, or claim late and risk dying before breaking even.

> Many people think Social Security decisions are just about simple timing
## COLA compounds over time
Social Security adjusts for inflation yearly. A 3% COLA on $2,480 monthly adds more dollars than 3% on $1,400, compounding dramatically over decades.
## Taxation matters too
Required minimum distributions from IRAs are taxable income. Delaying Social Security and living on retirement accounts can reduce your lifetime tax bill.
## RMDs start at 73
The government requires you to take a certain percentage of your retirement account as income each year after you turn 73.
## Get professional help
Making this decision alone is risky and could cost you lifetime benefits or unnecessary taxes. Work with a financial adviser for your situation.
## Key takeaway

Social Security timing isn't just about break-even math; it involves COLA compounding, taxation, and RMDs, so work with a financial adviser.