How much of a cut do you take if you retire at 62?

Asked by: Ms. Pearl Parker  |  Last update: June 3, 2025
Score: 4.9/5 (25 votes)

If you claim Social Security at age 62, rather than wait until your full retirement age (FRA), you can expect a 30% reduction in monthly benefits. For every year you delay claiming Social Security past your FRA up to age 70, you get an 8% increase in your benefit.

How much do I lose if I retire at 62?

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. Starting to receive benefits after normal retirement age may result in larger benefits. With delayed retirement credits, a person can receive his or her largest benefit by retiring at age 70.

At what age can I collect 100% of my Social Security?

For anyone born 1960 or later, full retirement benefits are payable at age 67.

How much can I earn if I retire at 62?

The earnings limit increases (to $56,520 in 2023) for the calendar year in which you'll reach full retirement age. Starting in the month you hit your full retirement age, there is no longer an earnings limit. Your benefits will no longer be reduced regardless of how much income you have.

How much does the average 62 year old have saved for retirement?

Americans in their 60s have the most saved for retirement with average balances close to $1.2 million. Average account balances more than double between those in their 20s vs their 30s. Those in their 80s still have an average balance of almost $815,000 for retirement.

Can You Take Social Security if You Retire at 62?

40 related questions found

What is the average retirement pay at 62?

According to the SSA's Office of the Actuary, retired-worker beneficiaries who were 62 years old in December 2023 received an average check of $1,298.26.

Why 62 is the best age to retire?

“It gives you higher monthly Social Security benefits, allows you to wait to go on Medicare for health insurance, allows your 401(k) to build if you have that, allows you time to pay off your mortgage on your house and reduces the number of years you have to support yourself with your accumulated retirement assets.”

What is the retirement pay at age 62?

Early retirement benefits will continue to be available at age 62, but they will be reduced more. When the full-benefit age reaches 67, benefits taken at age 62 will be reduced to 70 percent of the full benefit and benefits first taken at age 65 will be reduced to 86.7 percent of the full benefit.

Will I get full benefits if I retire at 62?

You can start receiving your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount.

When my husband dies, do I get his Social Security and mine?

If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.

How much pension will I get from sss after 10 years?

If a member is qualified, the amount of monthly pension will be the highest result of the following formula: 300 + (20% x AMSC*) + (2% x AMSC) x (CYS** – 10); or. 40% x AMSC; or. Minimum pension (P1,200 if with at least 10 CYS or P2,400 if with at least 20 CYS).

Do I get my ex-husband's Social Security if he dies?

you're eligible for some of your ex's Social Security

wives and widows. That means most divorced women collect their own Social Security while the ex is alive, but can apply for higher widow's rates when he dies.

What is my Social Security if I only worked 10 years?

Although you need at least 10 years of work (40 credits) to qualify for Social Security retirement benefits, we base the amount of your benefit on your highest 35 years of earnings.

What are the disadvantages of retiring at 62?

Disadvantages of Early Retirement
  • Foregoing employer-sponsored health care costs. ...
  • Getting hit with penalties and fines for accessing your retirement funds early. ...
  • Realizing a loss of benefits.

Can you get Medicare at 62?

Medicare is the federal health insurance program for people who are 65 and over. If you are under 65, you may be eligible to get Medicare earlier if you have a disability, End-Stage Renal Disease (ESRD), or ALS (Lou Gehrig's Disease).

How many hours can I work if I retire at 62?

Social Security: How Many Hours Can You Work and Still Collect Benefits? You can continue to work as long as you want, and you can still collect Social Security benefits.

Can I still earn money if I retire at 62?

Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.

What is the #1 reason to take Social Security at 62?

Those facing financial emergencies, such as a layoff or debt, may benefit from accessing Social Security early. If you retire early and need extra income, Social Security benefits can provide supplemental funds to support your new lifestyle, hobbies or retirement activities.

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

Retired at earliest retirement age (62): $2,710 per month. Retired at full retirement age: $3,822 per month. Retired at age 70: $4,873 per month.

What happens if I don't get 40 credits for Social Security?

We cannot pay benefits if you don't have enough credits. In 2025, you receive 1 credit for each $1,810 of earnings, up to the maximum of 4 credits per year. Each year the amount of earnings needed for credits goes up slightly as average earnings levels increase.

What is the minimum retirement benefit at age 62?

What is the minimum Social Security benefit at age 62? The youngest age at which you can begin claiming the minimum Social Security benefit is 62. In 2024, the special minimum Social Security benefit for retirees at age 62 will be around $2,710.00 per month.

What are the rules for retiring at 62?

You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

What is the healthiest retirement age?

You're Likely to Live Longer If You Retire After 65.

How much do I lose if I retire early?

If you started paying into your pension at 35 and the pension is based on 1/80 of your final salary, then: retiring at 55 would give 20/80 of final salary. retiring at 65 would give 30/80 of final salary.