There’s a reason retirees are warned not to try to live on Social Security alone. Those monthly benefits will replace about 40% of your pre-retirement wages if you earn an average income. If your income is above-average, you can expect Social Security to replace an even smaller percentage.
But while it’s one thing to retire on just Social Security if you’re claiming benefits at, say, 67, it’s another thing to try to retire on Social Security alone when you’re filing at 62. And if you go the latter route, you might end up in an extremely stressful financial situation.
What life might look like on a reduced Social Security check
The average monthly Social Security benefit at age 62 is $1,424. On an annual basis, that’s a little more than $17,000 per year.
The Bureau of Labor Statistics, meanwhile, reports that in 2024, the average American 65 and older spent $61,432 on expenses. If you claim Social Security at 62 and only get about $1,424 a month, it means you’ll only be able to cover about one-fourth of what the typical senior spent two years ago.
And if you’ve been paying attention to prices, you may know that costs are higher now than they were in 2024. That makes an early Social Security claim at 62 even more dangerous.
When it’s safe to file early — and when it pays to wait
Many people claim Social Security at 62 because they have to, such as if they’ve been laid off and need the income or can no longer work. But if you’re able to hold out until at least your full retirement age (FRA), you’ll have a more generous paycheck to look forward to.
Now this doesn’t mean claiming Social Security at 62 is always a bad choice, even if it only results in a $1,424 monthly paycheck. If your health is poor and you don’t expect a long lifespan, filing as early as possible could give you a larger lifetime Social Security benefit.
Also, if Social Security won’t be your only source of retirement income, then an early claim could be your ticket to spending money you can enjoy when you’re younger and potentially healthier.
For example, if your retirement savings will provide you with $61,000 a year, that might cover your basic needs. So if you’re looking to Social Security for “fun money” in retirement, an early claim may not be problematic.
On the other hand, if you’re short on savings, it could make sense to wait until FRA to take benefits, which is 67 if you were born in 1960 or later. It could even, in that case, pay to delay your claim past FRA. Each year you wait boosts your benefits by 8% until age 70.
All told, if you claim Social Security at 62 and don’t have other income, you might struggle to put a roof over your head, pay for healthcare, buy the food you need, and cover your utility costs. You may be able to pay for some of those things on a reduced benefit, but covering all of them may be tough. And you can probably forget about having money for extras.
That’s why it’s best to proceed with caution before signing up early. But just as importantly, try to make sure Social Security isn’t your sole retirement income stream. Contributing even modest amounts to a retirement account through the years could help you supplement your benefits and avoid financial struggles later in life.
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