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Claiming Social Security at 62 Locks In a Costly Lifetime Cut

Fresh estimates put the long-term gap at about 30% per month with six-figure lifetime effects.

Overview

  • New analysis pegs a typical early-claim shortfall at roughly $1,100 per month versus waiting for full retirement age benefits.
  • Delaying past full retirement age earns about 8% per year in credits up to 70, often adding more than $100,000—and in examples about $144,000—to lifetime payouts.
  • Breakeven math shows 62 vs. 67 crosses around age 78 and 67 vs. 70 around 82, which many retirees outlive based on average life expectancy at 62.
  • Because COLA raises are applied to the benefit locked in at filing, earlier claims receive smaller dollar increases over time, and taxes plus the earnings test can further reduce take-home income.
  • Advisers highlight exceptions for early filing in cases like poor health or urgent cash needs and urge spousal coordination—often delaying for the higher earner—to boost household and survivor income.