Key Takeaways:
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If your full retirement age is 67 and you begin claiming Social Security benefits at 62, your monthly benefit is reduced, and it typically stays reduced for life.
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Your benefit amount can still change after you claim, but these changes are typically due to cost-of-living adjustments and other policy updates.
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If you regret claiming early, Social Security has options that may help in certain situations, but they come with strict conditions.
People whose full retirement age (FRA) is 67 assume their benefit will automatically increase later. Social Security often uses age-based milestones, so it’s natural to think that a later milestone will lead to a benefit increase. However, the Social Security Administration (SSA) sets your monthly benefit based largely on the age at which you claim.
What Is Full Retirement Age (FRA)?
FRA is the benchmark Social Security uses to calculate your monthly benefit amount. If you were born in 1960 or later, Social Security sets FRA at 67. If you claim before you reach FRA, Social Security reduces your benefit to account for the fact that you’ll be receiving payments for longer.
Many assume they can claim early and then convert to the full amount at 67. Social Security doesn’t work that way for a standard early claim. When you file at 62, you accept a lower monthly benefit than if you wait until FRA. Your benefit may still increase over time due to cost-of-living adjustments, but it won’t automatically reset to the full amount at 67.
Full Retirement Age Is a Reference Point
Think of FRA as a reference point. It marks the age when you can receive 100% of your benefit amount. If you claim earlier, you’ll receive less than 100%. If you claim later, you may earn delayed retirement credits (DRCs) that increase your benefit up to age 70.
It also helps to separate retiring from claiming. You can retire at 62 and delay claiming Social Security if you have another income source. You can also claim at 62 and continue working, though earnings rules may apply if you haven’t reached FRA. Social Security focuses on the claim date, not the date you stop working.
What Are Your Options If You Regret Claiming Retirement Early?
If you claim at 62 and later regret it, Social Security has some options that may help in certain situations. One option is withdrawing your application within 12 months of approval. If Social Security approves the withdrawal, it treats the application as if it never happened.
However, you’ll have to repay any benefits you and your family received, including amounts withheld for Medicare premiums, taxes, or other deductions. Additionally, Social Security allows this withdrawal only once, and it requires a written request.
Another option is voluntary suspension after you reach FRA and before age 70. Social Security allows people who have reached FRA to request suspension, and by doing so, they can earn DRCs for the months benefits are suspended. DRCs can increase your benefit when you restart them, but suspension doesn’t erase the early-claim reduction.
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FAQs
How much lower could my benefit be if I claim at 62?
The Social Security Administration (SSA) states that claiming as early as 62 can reduce your benefit by as much as 30% compared with waiting until FRA, depending on your birth date and timing. The reduction is calculated monthly, so the exact percentage varies.
Can I undo my decision if I claimed at 62?
Sometimes, but options are limited. The SSA allows you to withdraw your application within 12 months of approval if you repay all benefits received and meet other criteria. You can only withdraw an application once. After FRA, you may be able to suspend benefits to earn delayed retirement credits (DRCs) until age 70.
Does working while receiving benefits at 62 affect what I get?
It can. If you claim before FRA and earn above certain limits, Social Security may withhold some benefits under the earnings test. The SSA notes that benefits withheld due to the earnings test are not lost and can lead to a higher benefit at FRA to account for months withheld.
Sources:
Guide on Taking Social Security: 62 vs. 67 vs. 70 | Charles Schwab
Benefit Reduction for Early Retirement | SSA
