What happens if I retire at 62?

Retiring at 62 means you can start collecting Social Security benefits, but they will be permanently reduced (potentially up to 30%) compared to waiting for your Full Retirement Age (FRA), usually 67, and you'll have more years to enjoy retirement and pursue hobbies, though you'll need sufficient savings for living expenses and health insurance, as Medicare eligibility doesn't start until 65.


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

Yes, you can draw Social Security at 62 and work full-time, but your benefits will be reduced if your earnings exceed the annual limit until you reach your {!nav}Full Retirement Age (FRA){/nav} (around 67 for most people), at which point you can earn unlimited amounts without impacting your benefits. For every $2 you earn over the limit (around $24,480 for 2026) before FRA, $1 in benefits is withheld, but this isn't lost money; it's added back later when benefits are recalculated at FRA, resulting in a higher monthly check. 

What are the rules for retiring at 62?

Early retirement

You can receive Social Security retirement benefits as early as age 62. However, we'll reduce your benefits if you start receiving them before your full retirement age. For example, if you turn age 62 in 2026, your benefit would be about 30% lower than it would be at your full retirement age of 67.


How much do I make if I retire at 62?

If you retire at age 62, your monthly Social Security benefit will be reduced, averaging around $1,300-$1,500 (as of late 2024/early 2025), but the exact amount depends on your earnings history, with the maximum being around $2,700-$3,000 for top earners in 2026, a roughly 30% cut from your full retirement age (FRA) benefit. To get your precise figure, create a "My Social Security" account on the Social Security Administration website to see personalized estimates for claiming at different ages. 

Is it ever a good idea to take Social Security at 62?

Deciding whether to take Social Security at 62 involves weighing immediate cash flow against permanently reduced monthly payments, with the best choice depending on your health, financial needs, other income, and life expectancy; taking it early gives you more checks but smaller ones (up to 30% less), while waiting (up to age 70) means larger checks, providing a longevity hedge, but you'll receive fewer checks overall, making a break-even analysis crucial. 


Why You SHOULD Retire and Take Social Security at Age 62 (5 Reasons)



How much money will I lose if I retire at 62 instead of 67?

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 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."

How to get $3000 a month of Social Security at age 62?

Only workers who consistently earn at or above the Social Security wage base limit for 35 years and strategically delay their benefits can approach this level. Key Requirements to Reach $3,000 Monthly: Maximum earnings history – Earn at or above the wage base limit ($160,200 in 2024) for 35+ years.


Why is retiring at 62 a good idea?

People retire at 62 for more time to enjoy life, pursue passions, reduce work stress, and spend time with family, often using the earliest eligibility for Social Security to start income, though this comes with reduced monthly benefits; other reasons include health issues or a desire for a simpler life, though financially, delaying benefits (to age 70) can significantly increase lifetime payments.
 

Is $5000 a month a good retirement income?

Yes, $5,000 a month ($60,000/year) is often considered a good, even comfortable, retirement income for many Americans, aligning with average spending and covering basic needs plus some extras in most areas, but it depends heavily on location (high-cost vs. low-cost), lifestyle, and if your mortgage is paid off; it provides a solid base but needs careful budgeting and supplementation with Social Security and savings, say experts at Investopedia and CBS News, Investopedia and CBS News, US News Money, SmartAsset, Towerpoint Wealth. 

What are the biggest mistakes people make in retirement?

The top ten financial mistakes most people make after retirement are:
  • 1) Not Changing Lifestyle After Retirement. ...
  • 2) Failing to Move to More Conservative Investments. ...
  • 3) Applying for Social Security Too Early. ...
  • 4) Spending Too Much Money Too Soon. ...
  • 5) Failure To Be Aware Of Frauds and Scams. ...
  • 6) Cashing Out Pension Too Soon.


Can I retire at 62 and get Medicare?

No, you generally cannot get Medicare at age 62, as eligibility starts at 65, but exceptions exist for specific disabilities like ALS (Lou Gehrig's disease) or End-Stage Renal Disease (ESRD), or if you're receiving Social Security Disability (SSDI) for 24 months. If you're under 65 and don't qualify through disability, you'll need other coverage, like employer plans or ACA Marketplace, until you're eligible at 65. 

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 is the best age to retire?

“Most studies suggest that people who retire between the ages of 64 and 66 often strike a balance between good physical health and having the freedom to enjoy retirement,” she says. “This period generally comes before the sharp rise in health issues which people see in their late 70s.


What is the difference between Social Security at 62 and 67?

Claiming Social Security at 62 provides smaller, permanently reduced monthly payments (around 30% less if your full retirement age is 67), while claiming at 67 gives you 100% of your benefit, maximizing monthly income for life, though you miss out on early payments; the best choice depends on your health, finances, and life expectancy, considering the break-even point where delayed benefits catch up in total payout. 

What is a good retirement income?

A good retirement income generally aims for 70-80% of your pre-retirement income, but it varies; some need 100% for travel, while others need less due to lower taxes and paid-off homes, so calculate your specific needs by budgeting for housing, healthcare (a big factor!), and lifestyle (travel vs. quiet life). A common benchmark is 80% of your final salary to maintain your living standard, factoring in savings like Social Security and pensions, notes Discover and NerdWallet. 

What is the smartest age to retire?

There's no single "smartest" age, but 65-67 is a common sweet spot for maximizing benefits (full Social Security, Medicare eligibility), while many Americans think 63 is ideal but often retire around 62-64 due to health or finances. The truly best age depends on your financial security, health, lifestyle goals, and desire to work, with some experts suggesting delaying Social Security to 70 for maximum payout, making late 60s a financially optimal time to retire, even if you start earlier. 


How many hours am I allowed to work if I retire at 62?

You can work as many hours as you want at age 62, but your Social Security benefits might be reduced until you reach your Full Retirement Age (FRA), typically 67; after FRA, there are no earnings limits, and you can work full-time without affecting benefits, though high earnings can make benefits taxable. The key factor is your income relative to the annual limit (e.g., ~$23,400 in 2025), not hours, as earnings over the limit reduce benefits dollar-for-dollar before FRA, but this is temporary and recalculated later. 

How much a month will I get if I retire at 62?

If you retire at 62, your monthly Social Security benefit will be permanently reduced by up to 30% compared to waiting for your full retirement age (FRA), with averages around $1,300-$1,400 (as of 2024/2025) but potentially much more or less depending on your lifetime earnings, with the maximum at age 62 being around $2,700-$3,000 in recent years for top earners. To get an accurate estimate, use the SSA's "My Social Security" account or their online calculators, as benefits depend on your 35 highest-earning years. 

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.


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. 

Does Dave Ramsey recommend taking Social Security at 62?

Ramsey says it's fine to collect benefits as early as age 62 — something most financial experts advise against — if you take your checks and invest them.

What is the average 401k balance for a 65 year old?

For a 65-year-old, the average 401(k) balance is around $299,000, but the more representative median balance is significantly lower, at about $95,000, indicating many high savers pull the average up, with balances varying greatly by individual savings habits, income, and other retirement accounts. 


Why do most people take Social Security at 62?

The most obvious reason to claim Social Security benefits early is if you think you won't be receiving benefits for many years. “If you know how long you're going to live, the conversation would be a lot easier,” Wolk says. Someone who knows they will die at age 65 will undoubtedly want to start benefits at age 62.