Claiming at 62 Cuts Your Social Security 30% for Life, and It Can Cap Your Spouse’s Survivor Benefit Too

For many years, 62 was the most popular age to file for Social Security. And that was for a good reason.

Age 62 is the earliest you can claim Social Security. And let’s face it. It’s hard to say no to monthly checks when they first become available.

If someone were to say to you, “I’ll give you a boost in your paycheck if you’re willing to wait another month,” you’d probably say no. So you can imagine that waiting years beyond age 62 to claim Social Security may not be appealing in the slightest.

But the reality is that waiting on Social Security has a serious upside. Not only might it put more money in your pocket, but it might also leave your spouse with a larger retirement paycheck for life.

Why filing early can sting from multiple angles

Even though you can claim Social Security at 62, you won’t get your monthly benefits without a reduction until you reach full retirement age (FRA). FRA is 67 for anyone born in 1960 or later.

If you claim Social Security at 62 with an FRA of 67, your benefits are reduced by about 30%. And that reduction is for life.

But you’re not the only one who might see reduced checks. A Social Security claim at 62 on your part could leave your spouse with less money, too.

If you’re the higher earner in your household, your spouse will be able to collect a survivor benefit from Social Security if they outlive you. And that survivor benefit will be the equivalent of your monthly check.

Now, let’s say you sit tight until FRA and file for Social Security then, resulting in a $2,000 monthly benefit. That means your spouse will be entitled to $2,000 a month as a survivor benefit.

On the other hand, if you claim Social Security at 62, you’ll reduce your monthly $2,000 check to $1,400. Then, if you pass away before your spouse does, their survivor benefit will only equal $1,400.

So an early claim doesn’t just hurt you. It could also leave your spouse with a much smaller retirement income while they’re trying to navigate life on their own.

And remember, Social Security benefits are eligible to get a cost-of-living adjustment (COLA) every year. So a smaller check means a smaller raise every time a COLA comes through for both you and your spouse’s survivor benefit.

Think through your options carefully

It can be very tempting to claim Social Security at 62. But before you do that, think about the impact your choice might have not just on your monthly income, but also, your spouse’s.

It’s certainly not easy to wait until FRA to claim Social Security. And you may have to at least work part-time while you’re waiting if you’re intent on holding off until FRA. But if you’re able to sit tight, it could lead to a lot more financial stability and less stress for you and your spouse for the rest of your lives.

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