The Average Social Security Benefits For 62-Year-Olds May Surprise You

There are many factors to consider when planning for retirement; from how much you really need to retire at 50 to the month to consider when planning to retire, and even reasons you might think to delay your retirement. This is in a bid to show that the only simple thing about retirement or Social Security is making mistakes, particularly with age. While many retirees can begin to claim their benefits from age 62, the earliest eligible age, cashing in on Social Security at 62 comes with a catch. Claiming early locks in a 30% cut in your monthly checks if your full retirement age (FRA) is 67. This isn't just a one-time hit — it sticks with you, shrinking your lifetime savings.

According to the Social Security Administration, the average monthly Social Security for all retired persons in 2024 is $1,976. So, a 30% reduction drops your checks to around $1,383. This cut affects more than just your immediate monthly income — it also chips away at your total lifetime Social Security earnings, since you'll be getting a smaller amount every month for as long as you receive benefits. 

Collecting Social Security benefits at 62 locks in a lower monthly payment for life. Now, if a beneficiary passes away, any benefits that their survivors receive would also be based on this reduced amount. So, the decision to claim early not only affects the original recipient's income but also impacts what their survivors get after they're gone.

There is a helpful rule called the widow(er)'s limit. It kicks in if the deceased started their Social Security early. To a widow(er), this makes it certain that if a spouse passes away, their partner will get about 82.5% of the full retirement benefits the deceased would have received. So, even if the deceased started taking their benefits at 62, their partner gets a little boost to their own benefits. This crafts a sturdy financial safety net, though it will not be as large as if the deceased had waited until full retirement age to start their benefits.

Survivors can start getting benefits as early as age 60 — or age 50 if they're disabled. But how much they get each month depends a lot on when the deceased claimed their benefits and when the survivor decides to claim theirs. If a survivor starts their benefits at 60, they'll get about 71.5% of the deceased's full retirement benefit. The later they wait to claim, up to their full retirement age (between 66 and 67), the more they'll receive, maxing out at 100%.

Although the financial implications of claiming early should be strongly considered, the decision to claim early is sometimes about more than just money. Several factors that lead to this decision, one of which is health concerns. For some, health issues can be a determinant, especially for people with disabilities, chronic or terminal illnesses, or unexpected health challenges that will reduce their life expectancy, and which prevent them from being able to work past 62.

There are also economic pressures and a decline in living standards; from inflation and other financial pressures like debt, living and medical expenses, unexpected bills and other familial support. When they arise, claiming Social Security benefits early might be the only way to solve these urgent needs and have some financial security. For others, there are growing concerns about the program's uncertainty given that the Social Security Board of Trustees estimate that the Social Security Trust Funds will be insolvent by 2041. Under current reports and with the uncertainty regarding the future of the Social Security program, some might choose to claim the benefits early as a way to "lock-in" their benefits in case of any changes in the system.