In 2025, more Americans than ever are choosing to claim Social Security at age 62, the earliest age to start receiving benefits. While this option provides immediate financial relief, it comes with long-term consequences.
Claiming early can reduce your lifetime benefits significantly, making it important to understand the financial trade-offs. If you’re considering early retirement, it’s crucial to make an informed decision, and consulting a retirement advisor can help you navigate the best course of action for your future.
Why Are So Many Americans Claiming Social Security at 62?
The number of people claiming Social Security at age 62 has surged in 2025, reaching a 15% increase compared to the previous year. This decision is largely influenced by fear of future cuts, financial uncertainty, and personal needs. Let’s explore the key reasons why so many are opting for early claims.
1. Fear of Insolvency and Future Cuts
The Social Security Trust Fund is projected to be depleted by 2033, and after that, payroll taxes will only cover about 79% of the scheduled benefits.
This raises significant concerns about potential benefit reductions in the future. For those nearing retirement, this uncertainty is enough to push them to claim benefits early while they can still rely on the program.
2. Economic Pressure and Lack of Savings
Many Americans don’t have sufficient savings for retirement. According to a 2024 survey by Fidelity, nearly 60% of individuals aged 60 to 64 worry about running out of money in retirement.
The average retirement savings for those in their 60s is just under $150,000, which is far from enough to maintain a comfortable standard of living. With rising inflation and medical expenses, delaying Social Security is simply not feasible for many.
3. Poor Health and Shorter Life Expectancy
For individuals in poor health or with a family history of short life expectancy, claiming Social Security early can be a rational choice. If you expect to have a shorter lifespan, starting your benefits at 62 may result in a higher lifetime payout than waiting until a later age.
For example, someone who passes away at 72 may receive more in benefits by starting early rather than waiting until full retirement age.
4. Social Security Administration Challenges
Administrative disruptions, such as budget cuts, staffing shortages, and technical issues, have made it more difficult to access timely support from the Social Security Administration. In some cases, this has led to delays or miscalculations of benefits, making early claims seem like the safer option to ensure timely payments.
Historical Trends: What’s Changed?
In the past, claiming Social Security at 62 was quite common. However, with people living longer and more strategic financial planning becoming the norm, financial advisors began recommending that individuals wait until their full retirement age or even age 70 to maximize their benefits.
Yet, in recent years, the trend has reversed. As of early 2025, 30% of new claimants are taking benefits at 62, up from 27% in 2022. This shift is largely driven by fear, financial uncertainty, and the pressure of current economic conditions.
Real-Life Examples
Case Study 1: Linda, 62, Texas
Linda, a Texas resident, lost her job during the COVID-19 pandemic. After using her savings to stay afloat, she’s now 62 and facing ongoing health issues. “I know I’ll get less money,” she says, “but I need it now. It’s not a choice—it’s survival.” For Linda, early claiming was a necessary decision given her limited options.
Case Study 2: Marcus, 66, New Jersey
Marcus, 66, decided to wait until his full retirement age to claim Social Security. With a stable job and a strong 401(k), he was able to delay claiming. “Delaying was hard, but now I’m getting a higher check for life. It’s worth it if you can swing it,” he says. Marcus’s decision highlights how waiting can result in a larger monthly benefit.
Should You Claim at 62? A Step-by-Step Guide
If you’re considering claiming Social Security at 62, it’s important to take the following steps to make an informed decision.
Step 1: Understand Your Full Retirement Age (FRA)
Your FRA is determined by your birth year. For individuals born in 1960 or later, your FRA is 67. Claiming before your FRA results in a reduced monthly benefit.
Step 2: Estimate Your Life Expectancy
Use tools like the Social Security Administration’s Life Expectancy Calculator to estimate how long you may expect to receive benefits. This can help you determine whether claiming early makes sense based on your health and family history.
Step 3: Analyze Your Financial Situation
Take a close look at your financial situation. Do you have enough savings to supplement your Social Security benefits? Are you still working, or do you rely solely on Social Security for income? Determine if early benefits will cover your living expenses.
Step 4: Weigh Pros and Cons
Here’s a quick comparison of the advantages and disadvantages of claiming early.
Pros of Claiming Early
Immediate access to income
Useful if you’re in poor health
Potential to avoid future benefit cuts
Cons of Claiming Early
Lower monthly benefit for life
Missed opportunity for higher lifetime benefits
Reduced spousal and survivor benefits
Step 5: Consult a Professional
Before making a final decision, it’s a good idea to talk to a financial advisor. They can run projections based on your specific situation, helping you understand the long-term financial impact of your decision.
In 2025, more Americans are choosing to claim Social Security at 62, driven by fear of future cuts, economic pressures, and personal needs. While this choice offers short-term relief, it often results in lower lifetime benefits.
By understanding your options, evaluating your financial situation, and consulting with a retirement advisor, you can make the best decision for your future. Don’t let fear dictate your choices—take the time to plan and make an informed decision that aligns with your long-term financial goals.
