claiming Social Security early: Thinking of claiming Social Security now? Why this timing could cost you thousands
About 38 million people, or about 63% of adult Social Security beneficiaries, rely on these payments for at least half of their income. Many people file for Social Security early because they need the money immediately, but that choice results in long-term losses, GOBankingRates.com reports.
Early filing cuts Social Security benefit
For most people, your full retirement age is 67, and claiming before that age will reduce your benefit. SSA cuts your benefits for each month you claim before age 67, and these cuts are permanent. If you file as soon as you qualify at age 62, your monthly check could be about 30% lower over your lifetime. If you can afford to wait and are in good health, delaying your claim is often a better option. Waiting gives you larger monthly checks for life and helps protect you if your savings run out later in retirement.
The SSA rewards people who delay filing a claim with higher payments, called delayed retirement credits. If you wait until full retirement age, your benefit may increase by up to 8% each year. If you wait until age 70, your benefits may be up to 24% higher than full retirement age. As GOBankingRates.com points out, another bad time to file for Social Security is when you’re still working and making good money. If you file before full retirement age and earn too much, SSA will temporarily reduce your benefits.
Working on Social Security and marriage risks
In 2026, SSA reduces benefits by $1 for every $2 you earn above $24,480 if you haven’t reached full retirement age. In the year you reach full retirement age, benefits are reduced by $1 for every $3 earned above $65,160. Filing early while you are working can reduce your already reduced benefit to a very low level, even $0, for several months. Filing early when you’re earning a lot can push you into a higher tax bracket for no real benefit
The earnings test stops when you reach full retirement age and your benefits are no longer reduced due to your work income. As GOBankingRates.com notes, married people need to be extra careful when claiming Social Security. Social Security benefits are based on lifetime earnings, so higher earners generally receive larger monthly checks.
In couples where one partner earns much more than the other, claiming too early can reduce the household’s total lifetime income. It is generally better for the higher-earning spouse to delay Social Security until age 70 whenever possible. If the couple needs income while waiting, the low-income spouse can claim starting at age 62. This approach allows the higher benefit to increase as much as possible over time. When one spouse dies, the surviving spouse receives the higher of the two benefits. Deferring the high earner’s claim helps protect the surviving spouse from a large drop in income later in life. According to GOBankingRates.com, claiming Social Security at the wrong time can hurt you not just for a few years but for decades. The key message here is that, if you can afford to wait, delaying Social Security can mean much more money and better financial security in old age.
FAQ
Q1. When is the worst time to claim Social Security?
The worst time is to file too early, especially when you’re still making good money at age 62 or before full retirement age.
Q2. Why should married couples delay Social Security?
The delay helps the high earner receive more lifetime payments and protects the surviving spouse later.
