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If you claimed Social Security as soon as you became eligible, you’re in a pretty big club. Roughly 30% of beneficiaries of the program, as of 2024, made their first claim at age 62, according to the Bipartisan Policy Center (1).
With the ongoing affordability crisis, it’s easy to see why nearly one in three seniors sign up for monthly payments as soon as they become officially eligible. But for many of these early retirees, the decision to sign up for benefits at 62 can haunt them later.
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If you’re one of these regretful beneficiaries, here’s what you need to know.
Early claim regrets
The biggest drawback with an early claim is the benefit reduction. For most people born after 1960, the full retirement age is 67 and claiming benefits earlier comes with a reduction in monthly payouts worth as much as 30%, according to the Social Security Administration (2).
That means if you qualified for $2,000 a month at age 67, claiming at 62 can slash that payout down to just $1,400. Not only is that a big gap, it’s also permanent. If you live into your 80s or 90s, the cumulative impact on lifetime earnings could be worth a lot.
For many people who claim early, this is the root of their regret.
What you can do
You can’t turn back time, but the good news is that there are several ways to mitigate your mistake even after you’ve filed your claim.
The most effective is the 12-month window for cancellation that the SSA offers (3) you. Essentially, you can cancel or withdraw your application for benefits within 12 months of filing, but you must pay back any benefits you have received over that period. This is a quick, but painful, fix.
If you’re beyond the 12-month window, there’s still an option available. There’s a little-known “do-over” option available for beneficiaries, according to Fidelity (4). Essentially, the SSA allows you to suspend benefits at full retirement age (FRA) and enjoy up to a 24% boost in monthly payments by restarting at age 70.
