Claiming Social Security is one of the most important financial choices retirees make. Yet, it’s also one of the most misunderstood. Many people start benefits as soon as possible at age 62, only to realize later that their monthly check is permanently smaller compared to waiting until full retirement age or even later.
That’s what happened to Janet, a 64-year-old retiree who now regrets claiming too early. But her story also shows that while early claiming comes with downsides, there are positives too — and steps she can still take to strengthen her finances going forward.
Janet’s Situation
Janet claimed Social Security at 62.
Her monthly benefit is permanently reduced.
She now worries she made a mistake.
Her case shows why understanding claiming rules is critical.
Claiming at 62: The Trade-Off
Claiming benefits at 62 reduces monthly payments by about 30% for life. Janet has already been receiving checks for two years, but at this lower rate. Once you lock in early benefits, the reduction stays forever.
Claiming at Full Retirement Age (67)
Had Janet waited until 67, she would have received her full benefit with no reduction. Claiming at full retirement age ensures you get 100% of your earned Social Security.
Claiming at 70: Maximum Income
Delaying beyond full retirement age increases benefits by about 8% per year until age 70. If Janet had waited, her check could have been 24% higher at age 70. This strategy works best for people in good health who expect to live longer, since it maximizes lifetime income.
Silver Lining 1: Early Access to Benefits
Even though her checks are smaller, Janet has already enjoyed two years of payments. That money gave her flexibility and income she may have needed. Those who wait risk not collecting if their life expectancy is shorter.
Silver Lining 2: More Years of Retirement Freedom
By claiming early, Janet could enjoy retirement sooner, whether that meant travel, leisure, or simply covering daily expenses. For some, extra years of freedom are worth the smaller monthly benefit.
Silver Lining 3: Work Opportunities Still Exist
Janet can still work part-time or full-time to supplement her Social Security. After she turns 67, there will be no earnings cap, meaning her benefits won’t be reduced no matter how much she earns. Extra income can help strengthen her financial future.
Can Janet Undo Her Decision?
Social Security allows you to withdraw your application within 12 months of claiming and restart later. But since Janet is past that window, she cannot undo her choice. Still, working and paying into Social Security could slightly increase her benefit amount.
The Value of Professional Advice
Claiming Social Security is complex. Factors like health, spousal benefits, and taxes should be considered. A financial advisor can provide personalized guidance to help avoid regret and create the best retirement strategy.
Janet’s story shows both sides of claiming Social Security early. Yes, her monthly checks are smaller, but she has also enjoyed early access, flexibility, and more retirement years.
With smart planning and possibly extra income, she can still enjoy her retirement confidently. Her experience is a reminder: take time to understand the rules and seek advice before making this life-changing decision.
