Claiming Social Security at 62 could mean a 30% cut now — and a 23% cut later

A retiree who claims Social Security at 62 could see monthly benefits slashed by about 30% compared to full retirement age. That cut could deepen by 2032, when Social Security’s trust fund is projected to run out. At that point, benefits may be cut by another 23%. For someone already receiving reduced payments, the combined effect could leave them with less than half the monthly income they would have collected by waiting until 67. The earliest age to claim Social Security is 62. But for those born in 1960 or later, full retirement age is 67. Waiting until then — or up to age 70 — increases monthly benefits. Dave Ramsey has long advocated claiming at 62, arguing that taking payments early maximizes lifetime benefits if a person dies sooner than expected. He also suggests investing the early payments to grow wealth. But many retirees need Social Security to cover basic living costs and cannot afford to invest the money. For those who live longer than expected, the reduced checks become a growing burden. The Congressional Budget Office projects the Social Security Old-Age and Survivors Insurance (OASI) Trust Fund will run out of money by 2032. Without legislative action, the program would only be able to pay about 77% of scheduled benefits. A retiree who claims at 62 and faces a 23% cut in 2032 could receive monthly benefits reduced by nearly half compared to full retirement age.