Financial experts don’t agree on much, but on this particular question they’re remarkably unified: claiming Social Security at 62 is, from a purely financial standpoint, the single worst decision most American retirees can make.
The evidence isn’t anecdotal because a 2019 study by a wealth management firm concluded that 92% of people would come out ahead by waiting until at least 65 to claim Social Security.
Anything earlier was considered suboptimal, with 62 sitting at the very bottom of the range. The same research found that roughly 57% of retirees would accumulate more money by holding off until 70, while only 6.5% would actually benefit from claiming before age 64.
Retiring at Age 62: A Penalty That Never Goes Away
A separate team of researchers reached the same conclusion. A 2022 analysis by economists at the Federal Reserve Bank of Atlanta and Boston University found that virtually all American workers between ages 45 and 62 should wait beyond 65 to collect their benefits.
The mechanics behind this are worth understanding, because the damage isn’t temporary; it compounds across an entire retirement.
For anyone born in 1960 or later, filing at 62 results in a 30% reduction compared to what they would receive at their full retirement age of 67. The Social Security Administration calculates this by cutting benefits five-ninths of 1% for each month claimed early, up to 36 months before full retirement age, and five-twelfths of 1% per month beyond that.
Retiring at 62 Cuts $45,600 Off of Your Payments
What makes this particularly painful is that the reduction is permanent. Even as annual cost-of-living adjustments raise the check over time, the penalty is baked in forever — and it also affects any survivor benefits a spouse may later receive.
Put in concrete dollar terms: someone who claims at 62 instead of waiting until 67 could receive $45,600 less over a lifetime, assuming they live to 85. And compared to someone who delays all the way to 70, the gap widens to roughly $60,000 in total lifetime benefits — the difference between $1,400 a month and $2,480 a month.
So Why Do So Many People Do It?
Here’s the uncomfortable irony: despite being the worst financial option, 62 is also the most common actual retirement age in the United States. Workers tend to plan on retiring around 65 or 66, but the average real-world retirement happens at 62 — a gap driven by health deterioration, layoffs, and caregiving responsibilities that force people out of the workforce earlier than they intended.
The data on forced early retirement is striking. Among people who retired in 2025, 46% did so earlier than planned, according to the Employee Benefit Research Institute. In 76% of those cases, the early exit was driven by factors outside their control.
Health problems, disability, or company-level changes like downsizing and closures. Separate research found that more than half of full-time workers in their early 50s are pushed out of their jobs before they’re ready to retire. In other words, many Americans don’t choose 62 — it chooses them.
The Broader Retirement Picture
Claiming early doesn’t happen in isolation. It lands on top of an already strained retirement landscape. Independent projections estimate that roughly 45% of Americans will face retirement funding shortfalls even if they wait until 65 to retire. Claiming at 62 only deepens that hole.
For lower-income households earning under $50,000, Social Security isn’t just one income stream among many — it’s the primary source of retirement income. Among current recipients, 61% say that losing even half of a monthly payment would leave them unable to cover basic expenses.
When 62 Actually Makes Sense
Experts are careful to note that “worst statistically” doesn’t mean “wrong for everyone.” Someone with a serious illness and a shortened life expectancy would likely be better off claiming as early as possible. And for someone who loses their job at 62 and can’t find new work, early Social Security may be the only viable bridge. Health, liquidity needs, and personal circumstances all matter.
For those who do have a choice and are in good health, the guidance from most financial professionals is consistent: wait as long as possible, up to age 70. Delaying Social Security functions as a form of insurance against a long retirement, market volatility, and rising inflation — three risks that tend to hit hardest in the later years.
This article is intended for informational purposes only and does not constitute financial, legal, or professional advice. Retirement planning decisions are highly individual and depend on personal health, financial circumstances, family situation, and long-term goals. Readers are strongly encouraged to consult with a qualified financial advisor or retirement planning professional before making any decisions regarding Social Security claiming strategies or retirement timing.
