Claiming Social Security at 62: What Changes

How the reduction is calculated

SSA applies an early-retirement reduction for every month benefits begin before full retirement age. For a retired worker, the first 36 early months are reduced by 5/9 of 1% per month. Additional early months are reduced by 5/12 of 1% per month.

With a full retirement age of 67, claiming at exactly 62 is 60 months early. That produces an approximate 30% reduction: 20% for the first 36 months and 10% for the remaining 24 months. A $2,000 PIA would therefore start near $1,400 before later COLAs.

• The reduction applies to the monthly worker benefit, not merely to the first few years.
• Waiting even a few months changes the reduction because SSA works month by month.
• A spouse or survivor decision can require a broader household analysis than this retired-worker calculator provides.

Work and earnings still matter

Claiming and stopping work are separate choices. If you work while receiving benefits before full retirement age, the retirement earnings test may temporarily withhold part of your payments. Continuing to work may also raise the underlying benefit if a new earnings year replaces a lower year in your highest 35.

Use your actual SSA earnings record where possible. If the calculation includes fewer than 35 earning years, each missing year is counted as zero and can lower the estimate.

A practical comparison

Compare age 62 with your own full retirement age and age 70 using the same earnings assumptions. Review monthly income, cumulative benefits, and the break-even estimate together. A crossover age is a planning reference, not a universal recommendation, because health, cash needs, taxes, investment returns, and survivor protection can change the decision.