For many Americans, Social Security is one of the most important sources of income during retirement. But one big question is when to start collecting benefits. While you can begin receiving checks as early as age 62, this choice comes with a major financial effect—a permanent cut to your monthly payments.
On the other hand, waiting until age 70 can mean much larger checks and greater long-term financial security.
In this article, we will break down how early Social Security claiming works, what you could lose by filing too soon, why waiting could benefit you, and how experts advise retirees to plan for the future.
What Happens If You Collect Social Security Early?
The earliest age you can claim Social Security benefits is 62. While this may sound attractive for those eager to stop working, it also means:
- A permanent reduction in monthly benefits.
- Lower lifetime income if you live into your late 70s, 80s, or longer.
- More reliance on personal savings and retirement accounts.
For example, if your full retirement age (FRA) benefit at 67 is $2,000 per month, you would receive only about $1,400 per month if you claim at 62. That’s a 30% cut.
Social Security Payments in 2025
According to the Social Security Administration (SSA), the average monthly benefit in 2025 is around $2,006.69.
The following table shows how claiming age affects your monthly check:
| Claiming Age | Monthly Benefit (Example) | Effect |
|---|---|---|
| 62 years | $1,400 | 30% lower than full retirement age |
| 67 years (FRA) | $2,000 | Standard benefit (no reduction) |
| 70 years | $2,464 | 76% higher than claiming at 62 |
This difference adds up. Over 20 years, someone who starts at 62 could lose more than $144,000 compared to waiting until full retirement age.
Why Do Many Retirees Still Claim Early?
Even with these clear numbers, a large number of Americans still claim early. Some common reasons include:
- Financial pressure: Needing income quickly due to unemployment or debt.
- Health concerns: Worrying about not living long enough to benefit from waiting.
- Lack of information: Many people simply do not understand how the system works.
Experts warn that this decision should not be rushed, as it has permanent consequences.
Benefits of Delaying Social Security Until 70
If you can afford to wait, there are strong benefits:
- Bigger monthly checks – Each year you delay after full retirement age increases your benefit by about 8%.
- Longevity insurance – If you live into your 80s or 90s, the higher payments give you more security.
- Stronger household income for couples – If the higher earner delays benefits, it ensures better survivor benefits for the spouse.
- Less pressure on savings – You won’t need to dip into retirement accounts as quickly.
The Impact of Inflation and Rising Costs
One key risk of claiming early is that inflation and health care costs can eat into your fixed income.
- Medicare premiums rise almost every year.
- Cost-of-living adjustments (COLAs) often fail to match actual expenses.
- Out-of-pocket health costs increase sharply in retirement.
By starting early with a smaller benefit, retirees face a greater risk of running out of money later in life.
The Future of Social Security
Another factor is the Social Security trust fund, which experts say could be depleted by 2033. Without reform, this could mean benefit cuts of more than 20%.
Some financial professionals, like Scott Galloway, argue for reform through means testing—cutting off benefits for wealthier retirees so the program can focus on preventing poverty.
Smart Retirement Planning Tips
If you’re nearing retirement, here are some practical steps:
- Use SSA’s online calculators to estimate your benefits.
- Plan around life expectancy and family health history.
- Coordinate spousal benefits to maximize household income.
- Increase 401(k) and IRA contributions if possible.
- Delay claiming Social Security if you can keep working.
Automation tools, like automatic 401(k) contributions or savings transfers, can help bridge the income gap until you claim benefits later.
Claiming Social Security early may feel like the easy choice, but it can cost you hundreds of thousands of dollars over the course of retirement.
While some retirees have no option but to take benefits at 62, those who can delay until age 67 or 70 often enjoy greater financial security, higher monthly income, and better protection against rising costs.
In the face of inflation and health care expenses, the smart move for many Americans is to carefully plan, save consistently, and wait as long as possible before filing.
FAQs
What happens if I claim Social Security at 62?
You will receive a 30% permanent reduction in your monthly benefits compared to waiting until full retirement age.
Is it better to wait until 70 to claim Social Security?
Yes, if your health and finances allow it, waiting until 70 can increase your benefits by up to 76% compared to age 62.
Can Social Security run out?
The trust fund may be depleted by 2033, but the system will still collect payroll taxes. This means benefits could be reduced by about 20% without reform.