Claiming Social Security Early: Funding Fears Push More Americans to Consider Benefits at 62

Applying for retirement benefits at 62 may seem like a way to secure income as soon as possible, but it has a permanent consequence: the monthly benefit can be reduced by up to 30%.

• Why it matters: The decision carries more weight as concerns grow about Social Security’s funding and thousands of workers approach a retirement that could last decades.

Social Security Fears Drive More Americans to Consider Claiming Early

A national survey by the National Association of Registered Social Security Analysts (NARSSA) found growing demand for guidance among those approaching retirement.

The study surveyed 189 registered analysts who work directly with individuals and families: 82.6% reported increased demand for advice over the last three years.

• The fact: 73.5% said their clients consider claiming Social Security benefits early due to possible future changes, while 58.7% reported concerns about whether Congress will resolve the program’s financial problems.

But the result reflects the experiences of the surveyed advisors with their clients; it does not mean that 73.5% of all Americans plan to claim Social Security early.

Claiming Social Security at 62 Can Reduce Benefits by 30%

Workers can start receiving retirement benefits at 62, but claiming Social Security early has consequences worth calculating before submitting an application.

• For a person born in 1960 or later, whose full retirement age is 67, starting at 62 can reduce the monthly benefit by up to 30%. This adjustment is permanent.
• For example, a $2,000 benefit at full retirement age would be equivalent to approximately $1,400 per month under a 30% reduction, an initial difference of $600 per month.

The decision, however, does not depend solely on the amount: income needs, health, employment, and family circumstances can make retiring earlier necessary for some people.

Can Social Security Really Run Out of Money?

The concern has a real basis. The trustees project that the OASI fund, which pays retirement and survivor benefits, will be able to pay full scheduled benefits until the fourth quarter of 2032.

Without legislative changes, once those reserves are depleted, the income the program continues to receive would be enough to cover approximately 78% of scheduled benefits. This does not mean that Social Security checks would disappear.

The combined retirement and disability funds, on the other hand, are projected to have reserves until 2034, when continuing income would allow for payment of around 83% of scheduled benefits under current law.

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Many Expect to Retire at 65 but Stop Working Earlier

The uncertainty coincides with another reality: Americans do not always get to retire when they had planned.

The 2026 Retirement Confidence Survey by EBRI found that workers expect to retire at a median age of 65, while retirees reported having retired at 62.

Almost half of retirees said they retired earlier than planned, and three out of four attributed this situation to circumstances beyond their control.

The financial future of Social Security faces challenges, but claiming Social Security early out of fear also has a known cost. Before deciding, the SSA allows users to compare personal estimates based on different claiming ages through a my Social Security account.