Key Points
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There’s nothing special about claiming Social Security at age 65.
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You will face an early claiming penalty and could lose money to the earnings test, too.
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Claiming at 65 could also reduce your lifetime Social Security benefit.
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Claiming Social Security at 65 can seem like a good idea, especially if you don’t want to face the steep 30% early withdrawal penalty for applying at 62. But it’s important to understand how your claiming at 65 will affect your benefit before you decide if it’s right for you.
Here are three things you should know before applying for Social Security at age 65. If any of them concern you, you might want to choose a different sign-up age.
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1. There’s nothing special about claiming Social Security at 65
Many years ago, age 65 was full retirement age (FRA) — the age at which you qualify for the Social Security benefit you’ve earned based on your work history. But FRA has gradually increased over the years and now stands at 67 for those born in 1960 or later.
Claiming at 65 is considered early claiming, and it’ll shrink your benefits by more than 13% compared to waiting until 67 to apply. This doesn’t mean it’s the wrong choice for everyone, but it could be for you if you were hoping to avoid an early claiming penalty.
2. You could lose money to the earnings test if you’re still working
The Social Security earnings test withholds money from your checks if you earn more than a certain amount from your job throughout the year while under your FRA. In 2026, you lose $1 for every $2 you earn over $24,480 if you’re under your FRA all year. Those who reach their FRA in 2026 only lose $1 for every $3 they earn over $65,160, and only if they earn this amount before their birthday.
If you claim Social Security at 65 and you’re still working, there’s a good chance you could lose some or all of your checks to the earnings test. Fortunately, this money isn’t gone forever. You will get a one-time benefit boost at your FRA to account for any money withheld due to the earnings test in previous years.
3. It might reduce your lifetime benefit
The ideal claiming age for maximizing your lifetime benefit depends on your life expectancy. Those with short life expectancies often get more money from Social Security by claiming early, even as young as 62. Claiming at 65 could also be a good fit for some of these seniors.
But if you expect to live into your 80s or beyond, delaying your Social Security application often results in a larger lifetime benefit. And you don’t have to stop at your FRA. You can continue delaying Social Security until you qualify for your largest possible checks at age 70.
None of this is to say you can’t claim Social Security at age 65 if you want to do so. Just make sure you understand the trade-offs of doing so before you apply. And if you’re not sure whether it’s right for you, consider waiting until your FRA to sign up instead.
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