One of the biggest financial decisions you’ll make in life is deciding when to start taking Social Security benefits. Once you turn 62, you’re allowed to claim your monthly payments anytime. Many people grab the chance immediately, especially if they’re ready to stop working.
But if you’re thinking about claiming your Social Security early, it’s worth taking a step back. While getting money sooner sounds nice, it could cost you heavily in the long run.
What Happens When You Claim Social Security Early
Claiming Social Security “early” means applying for your benefits before your full retirement age (FRA). For anyone born in 1960 or later, FRA is 67. So if you file at 62, 63, 64, or even 65 (when you might also join Medicare), you’re doing it early.
The catch? Your benefits are permanently reduced for every month you claim before your FRA.
Here’s what that looks like:
Claim at 64: Lose about 20% of your full monthly benefit
Claim at 62: Lose around 30%
And these cuts last for life—unless you withdraw your claim within 12 months and repay all the benefits you’ve received so far. That’s not something most retirees can afford to do.
Why Claiming Early Could Be Risky
Many people head into retirement without enough savings. They may feel forced to claim Social Security early just to keep up with monthly expenses.
But doing so might lead to long-term financial trouble. Here’s why:
You’ll have less money coming in every month, forever
It becomes harder to deal with rising living costs, especially in old age
You may struggle with healthcare costs, which usually go up as you age
You Might Need Bigger Benefits Later in Life
While some retirees live on small savings, others might have a decent retirement fund. But here’s the thing: the longer you live, the more money you’ll need. And your savings may not last forever.
The U.S. life expectancy has gone up drastically over the last century:
Women: From 51 years in 1900 to 80 years in 2000
Men: From 48 years in 1900 to 74 years in 2000
This means many people now live well into their 80s or 90s. If your savings run out by then, Social Security could become your only source of income. If you claimed early and are getting 20%–30% less each month, you may find it difficult to manage basic living expenses or rising medical bills.
When Early Claiming Might Make Sense
That said, claiming early isn’t always a bad decision. If you believe you won’t live very long—maybe due to poor health or a family history of shorter lifespans—it could make sense to take the money sooner.
For example:
If your parents and grandparents passed away in their 70s
If you have serious health issues or a low life expectancy
In such cases, starting benefits early could help you receive more overall during your lifetime, even if the monthly payments are smaller.
But if you’re in good health and have a family history of living long lives, waiting until full retirement age—or even delaying past 67—might be the smarter choice.
A Hidden $23,760 Social Security Bonus?
Most retirees don’t know that Social Security has a few “hidden” strategies that could increase your lifetime income. Some simple but smart decisions could help you earn thousands more during retirement—possibly up to $23,760 extra.
It’s worth exploring these options, especially if you’re behind on your savings. Every extra rupee (or dollar) counts when you’re no longer working.
Claiming Social Security early might seem like a good idea, especially if you’re eager to stop working or need money right away. But the decision has long-term effects. Your monthly benefits could be cut by 20%–30% for life, which may hurt your financial health in later years when you need money the most.
If you’re in good health and have a decent family history, waiting until your full retirement age—or even later—could give you more financial peace of mind during your golden years. It’s a personal decision, but one that deserves careful thought.
