5 Money Moves To Make Before 70 If You Claimed Social Security at 62

When you file for Social Security benefits, there are no “do-overs.” If you claimed Social Security at 62, for example, there’s no way to undo that election and get the higher benefits available at age 67 and 70. But there are still plenty of moves that you can make to change your bottom line before you reach age 70.

Here are the five most important steps to take if you opted for the earliest (and lowest) Social Security benefits.

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1. Know Your Earnings Limit

If you continue to work after claiming Social Security benefits, the Social Security Administration will claw back some of your check if you earn above certain limits.

For 2026, if you earn above $24,480 per year, the SSA will withhold $1 in benefits for every $2 you go above that threshold. You don’t actually lose that money. Once you reach full retirement age, the SSA will adjust your checks higher to account for the withheld benefits. But if you’re planning on continuing to work after filing for benefits at age 62, you should expect a temporary shift in your Social Security payout.

Note that in the year you reach full retirement age, that number changes. In that year only, you can earn up to $65,160, and if you cross that limit, your benefit only drops by $1 for every extra $3 that you earn. After that age, your earnings are not reduced no matter how much you earn.

2. Lock in Medicare on Time

If you file for Social Security benefits at 62, you don’t automatically get Medicare. While Part A does kick in at age 65, you still have to make your own decisions about whether you want Part B and Part D.

The SSA gives you a seven-month Initial Enrollment Period built around your 65th birthday. If you miss that window and decide to enroll later, you’ll pay a steep price. PerMedicare.gov, you’ll owe 10% more for every 12-month period that you wait. If you file two years late, for example, you’ll pay 20% more in premiums every month forever.

Missing that scenario is easy to do until the penalty shows up in your account. It can pay dividends to plan ahead and use a calendar or some other type of reminder.

3. Pausing Your Benefit Can Help You Rebuild

If you file for benefits at age 62, your Social Security check is permanently reduced. But if you’re at full retirement age but not yet 70, you can ask Social Security to voluntarily suspend your monthly payment. Once you restart benefits, your checks will be adjusted higher by roughly two-thirds of one% per month or 8% per year. If you don’t restart benefits by age 70, this increase will kick in automatically.

You still would have ended up with a bigger monthly check if you’d waited to file in the first place, but at least you can increase your check off that lower base by suspending your payments. This can be a good strategy if you have savings or other income to lean on for a period of time and don’t need your Social Security benefits until later.

One of the catches is that anyone collecting on your record, other than a divorced spouse, gets suspended too. You’ll also have to continue paying your own Part B premiums directly during the pause.

4. Plan for Taxes

Some Social Security recipients end up owing federal income tax on part of their benefit. According to theSSA, the limit is $25,000 in “combined income” as a single filer and $32,000 as a joint filer.

“Combined income” is your adjusted gross income plus tax-exempt interest and half of your annual benefit. When you cross those initial levels, at least 50% of your Social Security benefit becomes taxable. If you earn more than $34,000 or $44,000 as a single or joint filer, respectively, up to 85% is fair game.

Those thresholds haven’t moved since the 1980s and 1990s, so more retirees fall into them every year as benefits rise. Many retirees living off 401(k) or IRA income often aren’t aware that the amount they take out of these accounts can affect how much of their Social Security benefits are taxed.

5. Prepare for Medicare To Outpace Your COLA

According to the SSA, benefits got a 2.8% cost-of-living bump for 2026. But those paying Medicare Part B premiums may have felt like they lost ground.

That’s because Medicare Part B increases premiums on their own schedule. For 2026, that increase was 9.7%, per MedicareResources.org. Those premiums are typically deducted from your check before it ever reaches your bank account. If you’re relying on the Social Security COLA to cover your increased expenses, it can often come up short.

The Bottom Line

You can pull off most of these moves with a phone call or a five-minute form on SSA.gov. The biggest risk is not knowing the deadlines until they have already passed.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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