It is tempting. You turn 62, and you become eligible for Social Security. You think, "I should take the money now before the system goes bankrupt."
This is the most expensive mistake retirees make.
While taking benefits early puts cash in your pocket today, it permanently slashes your monthly income by up to 30% for the rest of your life. On the flip side, waiting is the only investment in the world that guarantees an 8% annual return.
In 2026, with inflation still a concern and life expectancy increasing, maximizing your Social Security check is your best defense against running out of money. Today, we crunch the numbers.
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| Taking Social Security at 62? Stop! |
1. The "Reduction" Trap (Age 62)
Let's say your "Full Retirement Age" (FRA) is 67, and you are entitled to $2,000 a month.
- If you claim at 62: Your benefit is cut by about 30%. You get only $1,400/month.
- The Reality: This cut is permanent. Even when you turn 90, you will still be getting that reduced amount (adjusted only for inflation).
Many seniors regret this decision when they reach their 80s and their savings have run dry, leaving them with a tiny Social Security check that barely covers groceries.
2. The "Delayed Retirement Credit" (Age 70)
Now, what happens if you wait?
For every year you delay claiming past your Full Retirement Age (up to age 70), the government gives you an 8% raise.
📈 The Power of Waiting
If you wait until age 70 to claim:
- Your $2,000 benefit grows to $2,480/month (plus cost-of-living adjustments).
- That is a 77% increase compared to the check you would have received at 62 ($1,400 vs $2,480).
Ask yourself: Where else can you get a guaranteed, risk-free 8% return in 2026? Not in the stock market. Not in bonds.
3. The "Longevity" Risk (You Might Live Too Long)
The biggest risk in retirement isn't dying too soon; it is living too long.
If you live to be 95 (which is common now), your savings might run out at age 85. Social Security is the only income that lasts as long as you do. A larger check at age 70 acts as "Longevity Insurance," ensuring you can afford assisted living or home care in your final years.
4. The "Widow's Penalty"
This is crucial for married couples. When one spouse dies, the survivor keeps the higher of the two checks.
If the higher-earning spouse claims early at 62 and then dies, they leave the surviving spouse with a permanently reduced benefit. By waiting until 70, the higher earner ensures that the surviving spouse will receive the maximum possible income after they are gone. It is an act of love.
Conclusion: Patience is Profitable
Unless you are in poor health or absolutely need the cash to survive, wait.
Use your 401(k) or savings to bridge the gap between 62 and 70. Treating Social Security as a "longevity annuity" rather than an "early retirement fund" is the smartest financial move you can make. Check your exact benefits today at SSA.gov.
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