The Single Most Expensive Social Security Mistake People Keep Making
- - The Single Most Expensive Social Security Mistake People Keep Making
David MainaDecember 17, 2025 at 5:06 AM
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Deciding when to claim Social Security is one of the most expensive choices retirees make. Many people file at 62 because the checks start then, but that move often costs far more than they expect.
A claim at 62 locks in a smaller monthly benefit for life, and every future COLA is built on that reduced base. Over a 20 to 30-year retirement, that choice can shrink total lifetime income by a large amount.
Below, you'll see why early filing carries such heavy trade-offs and how that decision can affect the rest of your retirement plan.
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Permanent benefit reduction
The biggest financial setback is that claiming at 62 permanently locks in a smaller check. The Social Security Administration (SSA) reduces your benefit by about 6.7% for each year you claim before your full retirement age (FRA), which today is roughly 66–67 for most people. In total, that's up to a 30% cut that stays for life.
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Lost bonus for delaying
From full retirement age to 70, Social Security adds roughly 8% a year to your benefit if you wait to file. Claiming at 62 means giving up those boosts entirely.
For example, a $2,000 FRA benefit could grow to about $2,480 by age 70. Filing early means missing those increases and starting retirement with a smaller base.
Earnings-test penalties if you keep working
Many people who file at 62 still earn income from a part-time job or side business. If you're under your full retirement age and earn more than the SSA's yearly limit, part of your benefit will be withheld.
In 2026, the limit will be $24,480. Anything above that triggers a $1 reduction for every $2 earned. That means you could lose most of your Social Security check if your paycheck is sizable.
Those withheld dollars are ultimately credited back in a higher benefit at FRA, but it can pinch your budget in the meantime.
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Smaller COLA increases
Each year, Social Security boosts benefits for inflation via a cost-of-living adjustment (COLA). But COLAs are a percentage of whatever base benefit you have.
Claiming at 62 means your base is permanently lower, so each COLA adds fewer dollars. In simpler terms, 2.8% of $1,400 is much less than 2.8% of $2,000.
Over many years, those smaller increases compound and can leave you with significantly less income throughout retirement.
It's hard to undo your decision
Once you file at 62, reversing course is tougher than most people realize. The SSA lets you withdraw your claim only within the first 12 months, and only once.
You must also repay every dollar of benefits you and your family received, including any taxes withheld. Most retirees can't easily repay a large lump sum, so in reality, the decision usually becomes permanent.
Consider longevity risk
When you reach your early 60s, the odds favor a long retirement. A 62-year-old man today can expect to live about 21 more years, and a woman about 24 more years.
If you live into your 80s or beyond, a common outcome, the higher monthly checks that come from waiting could deliver far more lifetime income than filing early ever could.
Social Security is one of the few sources of income that continues for life and rises slowly with inflation.
A larger monthly payment gives you more stability in your later years, when health care and living costs may rise, and personal savings may be running down. By contrast, claiming early locks in a smaller check at the exact time you may need a stronger financial cushion.
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When taking benefits at 62 makes sense
Some retirees face situations where an early claim is reasonable. For instance, serious health issues may lower your expected lifespan, and if you don't expect to reach the break-even age in your late 70s or early 80s, filing at 62 can deliver more total income.
Others can't work into their late 60s because of physical strain, caregiving demands, or a layoff with no safety net.
In those cases, Social Security at 62 may be the income that keeps the lights on. Still, if you can bridge the gap with savings for even a year or two, your long-term income may improve noticeably.
Your family situation matters as well. If you're single or if your spouse has a stronger benefit of their own, you may worry less about boosting a future survivor benefit. But for most couples, the higher earner delaying is still the best long-term strategy because it protects the surviving spouse.
Even if one of these exceptions applies to you, it's important to run the numbers with care. Many people underestimate how long they might live or how far their income must stretch.
A simple comparison across ages can help you see whether claiming early truly improves your outlook or just feels convenient in the moment.
Bottom line
For most retirees, delaying Social Security by even a few years can raise lifetime income and help them avoid running out of money in retirement.
Filing at 62 may feel satisfying in the moment, but it's one of the most common retirement missteps when you haven't run the numbers. For this reason, take time to check your estimates, compare scenarios, and ask questions. You've paid into the system for decades, and a thoughtful choice now can give you far more peace of mind (and cash) down the road.
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