Retirement Social Security

The Worst Age to File for Social Security - And What It Could Cost You

The real cost of filing age and how timing shapes lifetime income.

By David Maina

Edited by Laura Hohenstein

Updated Dec. 10, 2025

Plenty of people rush to claim Social Security the moment they turn 62, believing there's no real downside to filing early.

But research tells a different story. Claiming too early can drain your lifetime income and leave you with far less financial security. In fact, Georgetown researchers found that retirees who file before their "optimal" age often end up with much lower household wealth than those who wait.

Below, we'll explain why some ages are riskier than others and help you see how claiming timing fits into your broader retirement plan.

Learn 7 ways to generate income with a $1,000,000 portfolio

Learn the strategies wealthy retirees use to fund their retirement with $1,000,000 — and how you can, too — with this new guide: The Definitive Guide to Retirement Income from Fisher Investments.

Fisher Investments has helped tens of thousands of investors retire comfortably since 1979. With over $332 billion under management, they provide tailored money management to help achieve long-term goals.

Get your guide here

Permanent reduction in monthly benefit

The biggest cost of early filing is simply getting a smaller check forever. If you claim at 62 when your full retirement age (FRA) is 67, Social Security cuts your benefit by about 30%.

Take someone whose full benefit at 67 would be $2,000. Filing at 62 drops that amount to roughly $1,400. That's a $600 loss every month, or about $7,200 a year, every year you collect benefits.

To put it simply, claiming early gives you income sooner, but it permanently shrinks the base you'll rely on for the rest of your retirement.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Lost delayed-retirement credits

Another major cost of claiming early is missing out on delayed-retirement credits. For every year you wait past your full retirement age (up to 70), your benefit grows by about 8%, and that increase is permanent.

For instance, someone with a $2,000 FRA benefit would get about $2,480 at age 70 (24% more), but that extra $480 per month never happens if you already claimed at 62. In other words, by claiming early, you miss out on roughly $5,760 per year of benefit that you could have had at 70.

Over a long retirement, those missed credits add up, and the lost income can be significant.

Earnings-test clawbacks when you work before full retirement age

If you claim before full retirement age and still earn a paycheck, the Retirement Earnings Test can shrink your benefits in the short term.

In 2026, any income above $24,480 triggers a withholding of $1 in benefits for every $2 you earn over the limit. So if you make $10,000 above that threshold, the Social Security Administration (SSA) holds back $5,000 of your benefits for the year.

SSA will later adjust your benefit at full retirement age to account for the months withheld, but until then, you bring home less each month.

And because the limit is only about $2,040 per month, it doesn't take much part-time work to trigger a reduction. Many early filers are often surprised to see smaller checks in the first years simply because their earnings push them past this limit.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Weaker cost-of-living (COLA) growth

COLAs are calculated as a percentage of your monthly benefit, so if you start with a smaller check, every future raise is smaller too.

With the 2.8% COLA for 2026, for example, someone receiving about $2,000 a month gets roughly a $56 increase. But a filer taking a reduced $1,400 check would see only about $39.

Year after year, those smaller dollar bumps compound. A retiree who waited and locked in a higher base benefit will always get larger COLA increases, making their income stronger and more stable as costs rise.

Reduced spousal and survivor benefits

When you file early, the lower benefit also sets the ceiling for what your spouse or surviving spouse can receive.

Social Security bases these amounts on your benefit, so if you lock in a smaller payment at 62, every dependent benefit tied to your record shrinks too. According to the SSA, a spouse eligible for a $500 benefit (half of a $1,000 worker benefit) would get only about $325 if they also claimed at 62, roughly a 35% reduction.

The same pattern applies to survivor benefits. If you pass away, your surviving spouse generally receives the amount you were collecting. A lower early-claim benefit means you leave them a smaller income stream for the rest of their life.

When early claiming might make sense

Despite the drawbacks, there are situations where taking Social Security at 62 is a practical choice. If your health is poor or you have a family history that suggests a shorter life expectancy, you may not live long enough to benefit from waiting. In that case, starting benefits early lets you use the money while you can.

Immediate financial need is another common reason. Many people simply don't have the savings to bridge the gap between 62 and full retirement age.

In fact, a Schroders study showed that more than a third of early filers say they claimed as soon as possible because they needed the income. If you have little savings or face high medical or caregiving costs, a reduced check at 62 can still offer stability when you need income most.

Early claiming isn't ideal for everyone, but for some people it's the option that keeps their budget intact.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Bottom line

Choosing when to file for Social Security is personal, and the safest way to avoid money mistakes is to rely on clear numbers instead of making a blind call.

Your my Social Security account gives clear, personalized estimates for every claiming age, and most online calculators can show how your lifetime totals change if you file at 62, at full retirement age, or at 70.

Take a moment to weigh those figures against your health, savings, and monthly budget. And if the decision still feels uncertain, talk with a trusted advisor or use SSA's help resources.

More from FinanceBuzz: