Claiming Social Security at 62 Can Cost You Thousands

Experts warn that taking benefits early may not be the best financial move for most retirees

Mar. 28, 2026 at 9:05am

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While claiming Social Security at age 62 is the most popular option, financial experts caution that it can lead to a significant loss in potential lifetime benefits. The article explores four common reasons people choose to take Social Security early and the potential drawbacks of each scenario, including leaving tens of thousands of dollars on the table by not waiting until age 70 to maximize monthly payments.

Why it matters

Social Security is a critical source of retirement income for millions of Americans, so understanding the long-term financial implications of claiming benefits at different ages is crucial. This story highlights how taking Social Security at 62, while tempting, can have serious consequences that many retirees may not fully appreciate.

The details

The article cites research showing the typical retiree who claims Social Security before age 70 loses out on $182,370 in potential lifetime benefits. Experts say the 'break-even' point where waiting until 70 becomes more financially beneficial is around age 80. However, over 90% of Americans still claim benefits before 70, with more than 1 in 5 taking them at 62. The article explores four common reasons people claim early - needing the money, not expecting to live long, fears about Social Security's solvency, and a desire to invest the checks - and the potential drawbacks of each scenario.

  • Social Security becomes available to most Americans at age 62.

The players

Romina Boccia

Director of budget and entitlement policy at the Cato Institute.

Monique Morrissey

A senior economist at the Economic Policy Institute.

Laurence Kotlikoff

A Boston University economist and co-author of a scholarly paper on Social Security claiming strategies.

Robert Brokamp

A senior retirement adviser at The Motley Fool.

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What they’re saying

“If their alternative is going into debt, then they might want to claim it early.”

— Romina Boccia, Director of budget and entitlement policy at the Cato Institute

“Nobody would say, 'Draw [your savings] down to zero.' But if you have a few hundred thousand dollars, you can live on that until 70.”

— Monique Morrissey, Senior economist at the Economic Policy Institute

“Beg, borrow and steal to avoid taking Social Security at 62.”

— Laurence Kotlikoff, Boston University economist

“I think it is very unlikely there will be any benefit cuts to people who are close to or in retirement.”

— Robert Brokamp, Senior retirement adviser at The Motley Fool

What’s next

Experts recommend using a Social Security optimizer tool, such as the one offered by T. Rowe Price, to get a personalized assessment of the best claiming age based on your individual circumstances.

The takeaway

While claiming Social Security at 62 may seem tempting, the potential long-term financial consequences of doing so are significant. Retirees should carefully weigh their options and consult with financial advisors to determine the optimal claiming age to maximize their lifetime benefits.