You might be claiming Social Security at the wrong age — most people don’t even realize this

Americans can technically claim Social Security benefits after reaching the age of 62.

PUBLISHED 2 HOURS AGO

Representative image of a protester demonstrating against a Bush administration in June 18, 2001 (Cover image source: Getty Images/Photo by Spencer Platt)

Americans can claim Social Security retirement benefits as soon as they reach the age of 62, but people need to be smarter to make the most of them. Individuals also have the option to delay the withdrawal of benefits till the age of 70, and till then, the benefits grow each month, making it the ideal choice. Despite this, most Americans are cashing out at a younger age, losing out on a lot of money.

Representative image of a Social Security administrative office. (Image credit: Getty Images | Photo by Veronique D)

According to the Social Security Administration (SSA), the average worker who retired at the age of 62 received social security checks worth $1,377 per month as of June 2025, and with the cost-of-living adjustment of 2.8%, the amount for 2026 will go up to $1,416 per month or $17,000 a year. Claiming the benefits at 62 means a 30% reduction from what an individual could get after reaching the age of retirement.

People claiming their benefits at 67 were getting $1,963 in June 2025, and with costs adjusted, that number comes out to be $2,018 per month or about $24,200 per year, marking a significant jump. However, this is much lower when compared to the benefits one would receive at full retirement age. The jump from 62 to 67 is meaningful because the early-claim penalty disappears. At full retirement age, a person receives 100% of the calculated benefit, which makes this the baseline Social Security uses to compare all other ages when people make claims.

Photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October | Getty Images | Photo illustration by Kevin Dietsch — Photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October (Image source: Getty Images/Photo illustration by Kevin Dietsch)

The average for those claiming at 70 was $2,188 per month in June 2025, and with costs adjusted, that would be $2,249 or $27,000 a year, as per Finance Buzz. Thus, by claiming early, the median loss totals at about $182,370, and despite the startling numbers, data from the National Bureau of Economic Research (NBER) shows only 10.2% of workers claim Social Security at the right time.

Representative image of an old couple looking at a check (Image Source: Getty Images| Photo by Zinkevych)

According to The Motley Fool, 70 is the right age for most people, as the system was designed to incorporate penalties to equalize lifetime income after retirement. However, the life expectancy was shorter then, and in today's terms, the penalties seem much harsher. As most people live longer, the extra income they get makes up for the missed payments between the ages of 62 and 69. However, the problem is that most people don't want to wait till 70 as they can't afford to leave work and live off savings. According to The Motley Fool, the solution to that would be to contribute enough to the 401(k) plans or other retirement accounts to survive.

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