How much is Social Security cut if you retire at 62?

Starting Social Security at age 62 reduces your monthly benefit by up to 30% compared to your Full Retirement Age (FRA), typically 67, with the exact reduction depending on months filed early, as it's calculated as 5/9 of 1% per month for the first 36 months, then 5/12 of 1% for each extra month, permanently lowering payments for life.

How much is Social Security reduced if you take it at 62?

If you claim Social Security at age 62, your monthly benefit is reduced by up to 30%, depending on your Full Retirement Age (FRA), with the reduction being about 0.5% per month for each month before your FRA, meaning a larger cut for those with an FRA of 67 (around 30% total) compared to someone whose FRA is 66 (closer to 25%). The actual percentage depends on your birth year, but it's a significant decrease from your full, unreduced benefit. 

Why is retiring at 62 a good idea for Social Security?

Taking Social Security at age 62 allows you to start receiving benefits earlier, providing immediate financial support. This can be useful if you have health concerns, need income now, or just want to enjoy retirement more during your most energetic years. This video discusses these and other points.

What is the 50% rule for Social Security?

If the spouse of a primary begins to receive benefits at his/her normal retirement age, the spouse will receive 50 percent of the primary's primary insurance amount. The table below illustrates the effect of early retirement, for both a retired worker and his/her spouse.

Is Social Security taxed at age 62?

Yes, Social Security benefits can be taxed at age 62, but it depends on your total income, not your age; if your combined income (including half your benefits, wages, interest, and other taxable sources) exceeds IRS thresholds, up to 85% of your benefits may be subject to federal tax, and some states also tax benefits. If Social Security is your only income, you likely won't pay taxes on it, but if you have other retirement funds (like a 401(k) or IRA) or work part-time, taxes can apply. 

Once They Understand This, ALL Retirees Claim At 62

Can I collect Social Security at 62 and still work full time?

Yes, you can collect Social Security at 62 and work full-time, but the Social Security Administration (SSA) will temporarily reduce your benefits if your earnings exceed annual limits, a penalty that stops once you reach your full retirement age (FRA), typically 67 for those born in 1960 or later, at which point you keep all benefits regardless of earnings. For 2025, the limit is $23,400 under FRA, with a $1 reduction for every $2 earned over that, and a higher limit before FRA but in the year you reach it. 

How much tax will be deducted from my Social Security check?

Up to 50 percent of benefits can be taxed if combined income is $25,000 to $34,000 for singles, or $32,000 to $44,000 for couples filing jointly. Up to 85 percent of benefits can be taxed if combined income exceeds $34,000 for singles or $44,000 for couples filing jointly.

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 

What does Suze Orman say about taking Social Security at 62?

Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."

What are the three ways you can lose your Social Security?

You can lose Social Security benefits by working while collecting early, leading to earnings limits; incarceration, which suspends payments; or through garnishment for federal debts like taxes, student loans, or child support, along with other factors like remarriage or changes in disability status. 

What does Dave Ramsey say about drawing Social Security at 62?

Claiming Social Security at 62 can be risky, because if you don't have a lot of savings to supplement your benefits, you could end up short on income.

Is it foolish to retire at 62?

There's nothing wrong with that! But plenty of people are. If you're living debt-free, or close to it, and you've already got plenty of assets that can be used for your retirement income, there's no reason to delay your retirement any longer than you need to.

What is one of the biggest mistakes people make regarding Social Security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.

What is a good monthly retirement income?

A good monthly retirement income is often cited as 70% to 80% of your pre-retirement income, but it varies greatly by lifestyle, location, and expenses, with many needing $4,000 to $8,000+ monthly, depending on if they seek a modest, comfortable, or affluent retirement, while accounting for inflation and unique costs like healthcare. 

What are the biggest retirement mistakes?

The biggest retirement mistakes involve poor planning (starting late, underestimating costs like healthcare/inflation, not having a budget) and bad financial decisions (claiming Social Security too early, taking big investment risks or being too conservative, cashing out accounts, having too much debt). Many also neglect the non-financial aspects, like adjusting lifestyle or planning for longevity, leading to running out of money or feeling unfulfilled. 

How many people have $500,000 in their retirement account?

While exact numbers vary by source and year, recent data suggests around 7-9% of American households have $500,000 or more in retirement savings, though many more have significant savings in the $100k-$500k range, with a large portion of the population having much less, highlighting a big gap between the average (which is higher due to wealthy individuals) and the median (typical) saver. 

How much money will I lose if I retire at 62 instead of 65?

If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent.

What is the smartest age to collect Social Security?

The "smartest" age to collect Social Security varies, but age 70 is often statistically best for maximizing lifetime benefits, as monthly checks grow significantly until then, especially for higher earners and those expecting long lives; however, claiming at Full Retirement Age (FRA) (67 for most) secures 100% of benefits, while taking it as early as 62 provides income sooner but permanently reduces payments, making it ideal for those with immediate financial needs or shorter life expectancies. 

What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate ($240k x 0.05 / 12 = $1k/month). It's a motivational tool to estimate savings goals (e.g., $3,000/month needs $720k), but it's one-dimensional, doesn't account for inflation, taxes, or other income like Social Security, and assumes steady 5% returns, making a personalized plan essential. 

How much money can you make at 62 and still draw Social Security?

At age 62, you can earn up to the annual limit (e.g., $24,480 in 2026) and get full benefits; earning more results in a $1 reduction for every $2 over the limit, but these withheld benefits are restored later, and once you hit your Full Retirement Age (FRA), there's no limit on earnings, and you receive your full Social Security amount. 

What are the changes coming to Social Security in 2026?

After several years of above-average cost-of-living adjustments for Social Security, beneficiaries will receive a slight increase in the cost-of-living allowance (COLA) in 2026 based on the current inflation environment. Recipients will get a 2.8% raise, which is higher than the 2.5% increase last year.

What is the new $6000 tax deduction for seniors?

Joint filers over 65 will be able to deduct up to $46,700 from their 2025 return. The standard deduction has been super-sized for seniors. Thanks to provisions in the One Big Beautiful Bill Act, taxpayers 65 and older can claim an additional $6,000 without itemizing their deductions.

Should I have taxes withheld from my Social Security check?

Regardless of the method you choose, withholding tax from Social Security and making estimated tax payments help ensure you have paid sufficient tax. You want to avoid an underpayment penalty from the IRS when you file your income tax return.

Is Social Security going to be taxed in 2025?

Social Security benefits are still taxed under current tax law and considered a part of a recipient's taxable income. However, the 2025 Tax Act (One Big Beautiful Bill Act) introduced a temporary deduction that allows eligible beneficiaries to lower their overall taxable income and reduce their tax.