What is the difference between 62 & 63 in Social Security?

The difference around age 62 primarily relates to taking Social Security retirement benefits, which can begin at 62 but are permanently reduced (around 30% for someone with a full retirement age of 67), compared to waiting for your Full Retirement Age (FRA) (67 for most born 1960+) for 100% benefits, or even age 70 for the maximum benefit, with the decision depending on financial needs, health, and expected longevity.

Is it better to retire at 62 or 67 for Social Security?

It's generally better to wait until age 67 (your Full Retirement Age - FRA) for a higher, permanent monthly benefit, as claiming at 62 results in a 30% reduction; however, taking it at 62 can be better if you need money immediately, have a shorter life expectancy due to health, or coordinate with a higher-earning spouse, while waiting past 67 (until 70) offers even larger increases, but depends heavily on your life expectancy and financial needs. 

What percentage of Social Security do you get if you retire at 62?

If you retire at age 62, your Social Security benefit is permanently reduced by about 30% compared to what you'd get at your full retirement age (FRA), which is usually 67 for those born in 1960 or later, resulting in roughly 70% of your full benefit. This reduction comes from getting benefits 5/9ths of 1% for the first 36 months early, plus an additional 5/12ths of 1% for each month before your FRA, adding up to the 30% cut for claiming at 62, notes Bankrate and Charles Schwab. 

What's the difference in Social Security from 62 to 65?

Social Security

If you claim more than 36 months early, benefits are further reduced by 5/12 of 1% each month. This means if you claim at 62, you'll see a 30% reduction in benefits, while claiming at 65 will result in a smaller reduction of 13.3%. That difference adds up.

When to apply for social security benefits at age 62?

You can apply for Social Security retirement benefits as early as four months before you want them to start, with benefits potentially beginning as soon as you turn 62, but applying earlier means a permanently lower monthly payment. Decide based on your financial needs, health, and if family members (like a spouse or children) might need benefits sooner, but generally, delaying past your full retirement age (up to 70) significantly increases your monthly check. 

JANUARY 2026 UPDATE!! Social Security $1976 INCREASES to $3559 | Do You Qualify? | Dave Ramsey

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.

Is it better to start Social Security in December or January?

Starting Social Security in January is generally better than December because you'll receive an extra month of benefits and potentially benefit from the new year's Cost-of-Living Adjustment (COLA), plus it allows you to capture more Delayed Retirement Credits (DRCs) if you're waiting past Full Retirement Age (FRA). Waiting until January locks in a full month of credit and ensures you get the latest COLA before potentially working into the new year, maximizing your benefit, notes MassMutual and Rand Financial Planning. 

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.

Who qualifies for an extra $144 added to their Social Security?

You qualify for an extra ~$144 on your Social Security check if you have a Medicare Advantage (Part C) plan with a "Part B Giveback" benefit, which refunds some or all of your Medicare Part B premium, appearing as extra cash in your check, but eligibility depends on living in the plan's service area and paying your own Part B premiums. The "144" figure was common when the Part B premium was around that amount, but the actual refund varies by plan and location, potentially exceeding the full premium. 

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. 

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

Yes, you can draw Social Security at 62 and work full-time, but the Social Security Administration (SSA) will temporarily reduce your benefits if your earnings exceed yearly limits until you reach your Full Retirement Age (FRA), after which there's no earnings limit, and your benefit amount will increase to account for past deductions. For example, in 2025, if you're under FRA, the SSA deducts $1 for every $2 you earn over $23,400; this stops when you hit your FRA (age 67 for those born 1960+), and you get credit for withheld benefits. 

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. 

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 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 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.

Does everyone pay $170 for Medicare Part B?

Costs for Part B (Medical Insurance)

$185 each month ($202.90 in 2026) (or higher depending on your income). The amount can change each year. You'll pay the premium each month, even if you don't get any Part B-covered services.

What to do when Social Security is not enough to live on?

When Social Security isn't enough, supplement your income by exploring other government programs like SSI, SNAP, and Medicaid, working part-time, using retirement savings (401k, IRA), considering annuities for guaranteed income, delaying benefits to increase payments, and seeking help from non-profits like the National Council on Aging (NCOA) BenefitsCheckUp tool. 

How to get $800 back from Medicare?

To get up to $800 back from Medicare, you likely have a Medicare Advantage (Part C) plan or a Federal Employee Program (FEP) plan offering a Part B Premium Giveback or Medicare Reimbursement Account (MRA); you must be enrolled in both Medicare Part A & B, and then submit proof of your Part B premium payments via the plan's app, website, or forms to get reimbursed, often as a credit on your Social Security check or direct deposit. 

What is the biggest retirement regret among seniors?

Not Saving Enough

If there's one regret that rises above all others, it's this: not saving enough. In fact, a study from the Transamerica Center for Retirement Studies shows that 78% of retirees wish they had saved more.

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 is the average Social Security check at age 62?

The average Social Security check for someone retiring at age 62 is around $1,300 to $1,340 monthly, but this amount is permanently reduced, with recent figures showing averages like $1,298 (Dec. 2023) or $1,342 (late 2024). This is significantly less than waiting for your full retirement age (FRA), typically 67 for most, when benefits increase substantially; for instance, the average for a 67-year-old was over $1,880 in late 2023. Your exact benefit depends on your earnings history, with claiming at 62 reducing it by about 30% compared to your FRA benefit. 

What month is best to retire financially?

There's no single "best" month; it depends on your finances, but late December or early January often works well for tax reasons, allowing you to maximize final income/contributions and potentially lower your first year's taxable income, while retiring in the spring/summer can align with lifestyle goals and smoother transitions. Key factors are pension vesting, bonus payouts, healthcare timing (Medicare eligibility at 65), maximizing Social Security by waiting until 70, and your cash flow needs. 

What to do 6 months before turning 65?

Six months before turning 65, focus on planning for Medicare and Social Security: research Medicare (Parts A, B, Advantage, Supplement, Part D), understand your Initial Enrollment Period (IEP), review your Social Security statement, and budget for retirement, deciding on when to start benefits and how Medicare integrates with existing work coverage. 

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.