Key Points
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Claiming Social Security at 62 results in a 30% benefit reduction.
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Working beneficiaries could lose more money to the earnings test.
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It’s possible to change your mind later, but it’s better to choose your starting age carefully the first time.
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Claiming Social Security at 62 has an obvious upside: You’ll get the greatest number of checks possible. Your monthly benefit could be enough to help you finally retire or enjoy a more comfortable lifestyle than you have today.
But there are many misconceptions about claiming Social Security as soon as possible that are worth addressing before you apply. Here are three things to consider if you’re thinking about signing up for Social Security checks at 62.
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1. You’ll lock in a 30% benefit reduction
Most people today have a full retirement age (FRA) of 67. This is when you qualify for the full benefit you’ve earned based on your work history. Claiming early results in penalties that can shrink your checks by up to 30% if you sign up as soon as you’re eligible at 62.
This doesn’t mean claiming early is always the wrong choice. It can make sense if you can’t afford to cover your living expenses without help. And it could lead to your largest lifetime benefit if you have a short life expectancy. But for others, signing up at 62 could mean less money from Social Security overall.
2. You could be susceptible to the earnings test
The Social Security earnings test withholds money from your checks if you earn more than a certain amount from your job while claiming Social Security under your FRA. In 2026, you lose $1 for every $2 you earn over $24,480 if you’ll be under your FRA all year. Those who reach their FRA this year lose $1 for every $3 they earn over $65,160, and only if they earn this much before their birth month. These limits will rise to $25,560 and $67,920, respectively, in 2027.
This money isn’t lost forever. You get a one-time benefit boost at your FRA to make up for what the government withheld before. But the earnings test can still complicate your finances in the short term, so that’s something to plan for if you’re thinking about signing up at 62 while still working a job.
3. You’re not locked in
The Social Security Administration permits you to withdraw your benefit application within the first 12 months after you apply if you change your mind about when you want to sign up. However, you can only do this once, and you must repay all the benefits you and anyone else claiming on your work record have received thus far.
This is challenging, so it’s still best to choose your starting age carefully rather than relying upon this option. Make sure you’re comfortable with the trade-offs of applying at 62 before you go ahead.
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