From 24/7 Wall St. · Mike Barrington · · 3m
Social Security at 62 vs 70: Smaller Check Makes Sense
Claiming Social Security at 62 can yield more lifetime income than waiting until 70 for some retirees.
In brief
Claiming Social Security at 62 can yield more lifetime income than waiting until 70 for some retirees. Retirees claiming Social Security at 62 may collect more total income than those waiting until 70 if they expect shorter lifespans or need immediate cash flow. Originally reported by 24/7 Wall St..
Social Security Claiming Advice Confused
Confident advice about Social Security claiming age comes from every direction but misses factors that determine whether early checks help or hurt a specific household.
Claiming at 62 Reduces Monthly Benefit
For workers born in 1960 or later, claiming Social Security at 62 reduces the worker’s retirement benefit by 30% permanently.
Waiting Until 70 Boosts Monthly Benefit
Waiting until 70 produces about 124% of the benefit available at full retirement age for people born in 1960 or later.
Benefit Comparison Example
A $2,000 monthly benefit at full retirement age would produce $1,400 at 62 versus $2,480 at 70.
Breakeven Point Around Age 80
The person claiming at 62 gets an eight-year head start but the larger benefit catches up around age 80.
Life Expectancy Affects Decision
Someone expecting a shorter retirement has less time for the larger age-70 benefit to make up for eight years of missed payments.
Early Claiming Reduces Savings Withdrawals
Social Security collected at 62 can reduce the amount pulled from savings for retirees needing immediate cash flow.
Early Claiming Avoids Market Downturns
Early Social Security checks can reduce portfolio withdrawals during market downturns by providing an alternative cash source.
Portfolio Size Doesn't Guarantee Early Claiming
A substantial portfolio can make delaying easier by covering expenses between 62 and 70 but does not automatically mean claiming at 62 is better.
Stock Market Doesn't Bail Out Early Claimants
Social Security and stock market returns serve different purposes with no guaranteed market return to offset early claiming decisions.
COLAs Don't Eliminate Early Claiming Penalty
Social Security’s 2026 cost-of-living adjustment of 2.8% does not erase the penalty for claiming early or reward for delaying.
Earnings Test Changes Early Claims
Claiming at 62 while still working reduces benefits by $1 for every $2 earned above $24,480 in 2026.
Taxes Alter Early Claim Value
Up to 85% of Social Security benefits can be taxable for retirees above certain income thresholds.
Married Couples Have Different Needs
Delayed retirement credits can increase the surviving spouse’s benefit while early claiming may limit it.
Social Security Fairness Act Changed Numbers
The Social Security Fairness Act repealed Windfall Elimination Provision and Government Pension Offset for benefits starting January 2024.
No Universal Best Claiming Age
Retirees claiming at 62 may collect more total income than those waiting until 70 if they expect shorter lifespans or need immediate cash flow.
What to remember
Retirees claiming Social Security at 62 may collect more total income than those waiting until 70 if they expect shorter lifespans or need immediate cash flow.
