There is no doubt that early retirement from Social Security is one of the most popular options. It is very easy to understand the reasons that place this modality among the most chosen ones. One of the main reasons is that the earlier you apply for your benefit, the more checks you will receive. However, here’s something to keep in mind: your monthly benefit is also reduced by 30%.
The decrease in the amount you collect month to month does not mean it is always the wrong choice, although it is definitely something to keep in mind when deciding to apply for benefits. In the following paragraphs, we will share a more detailed analysis of how the average check for a 62-year-old compares to the average benefits at older claiming age.
How much does a person who opts for Social Security early retirement receive on average?
Social Security gives people who opt for full retirement an average check of $1,903.31 per month. This was the amount in 2023. However, today it is higher thanks to cost-of-living adjustments (COLA). Also, benefits increased by 3.2% in 2024, which would raise the monthly amount for this group to $1,966.28. Checks are projected to increase another 2.5% in 2025, which would leave this average at about $2,015.44.
However, those who applied for early retirement at age 62 receive much less money from Social Security. Their monthly benefit in 2023 was only $1,298.26. And if the 2024 cost-of-living adjustment is taken into account, the amount rises to $1,339.80. By 2025, the amount will rise by 2.5%, leaving the total amount at $1,373.30.
Average monthly benefits increase slowly along with the age at which the beneficiary applies for the benefit. Currently, those in the 70-74 age group take home the highest average benefit: $2,021.81 in 2023, $2,086.51 in 2024 and $2,138.67 in 2025.
How the government’s calculation for Social Security benefits works
This makes sense when we consider how the government calculates retirement benefits. At this point, we should remember that people can access their full retirement between the ages of 66 and 67. If you apply for early retirement (at age 62), Social Security reduces the amount of the check, while if you delay it, it will increase. The rate of increase also goes up the longer you wait to apply.
Waiting until age 70 would allow people to receive a larger check from Social Security, but that also has disadvantages. You will receive far fewer checks, and that may be less attractive to you than receiving more, but smaller, checks.
Should I claim Social Security at age 62?
There are key factors to consider when deciding whether you should apply to Social Security for early retirement or wait. The first is your health. Delaying receipt of benefits may not be advantageous if you don’t expect to live very long. In this case, you may prefer to sign up early so you can claim as many checks as possible.
If you choose that option, you should be aware that you permanently reduce the survivor benefits available to your spouse or dependents after you are gone. If you don’t need the money to cover your expenses today, not applying at all may be the best option.
Another reason you may want to apply to Social Security for early retirement is if you have no other sources of income. If delaying the application could only put you in debt, the recommendation is that early is the best option. And finally, for married couples who have had significant income disparity throughout their careers, it sometimes makes sense for the lower earning spouse to apply for Social Security at age 62.
