Taking Social Security at 62 Locks in a Lower Benefit—Even If Congress Acts

Claiming Social Security at age 62 permanently reduces benefits by up to 30 percent compared to waiting until full retirement age. If benefits are reduced in the future due to funding shortfalls, the cut applies to the already-lowered amount received by early filers. In many cases, that’s not a reason to rush—it’s a reason to wait. Delayed claiming increases benefits by a set percentage each month up to age 70. For most people, the breakeven age between claiming early and waiting until 70 falls around 80 to 81. Filing early is typically beneficial only if the recipient does not expect to live past 82 or 83. For healthy individuals with other income sources, waiting until 70 makes financial sense due to the guaranteed, inflation-adjusted income stream. The Social Security Trustees’ 2025 report projects the retirement trust fund will be depleted by 2033. At depletion, incoming revenue would cover about 77 percent of scheduled old-age benefits if Congress takes no action. On a combined Old-Age, Survivors, and Disability Insurance basis, the trust fund is projected to be depleted by 2034, with about 81 percent of benefits payable. Eliminating debt before retirement reduces reliance on Social Security, making funding uncertainty less impactful.