Claiming Social Security at 62 Cuts Benefits by $22,433 a Year
Updated
Updated · 24/7 Wall St. · Jun 23
Claiming Social Security at 62 Cuts Benefits by $22,433 a Year
2 articles · Updated · 24/7 Wall St. · Jun 23
Summary
$1,292 is the average monthly benefit for new claimants at 62, versus $3,162 at 70 — a $1,869 monthly, or $22,433 annual, gap that then compounds for life.
About 30% permanent cuts for claiming at 62 and roughly 8% annual delayed-retirement credits through 70 drive the difference; only 9.3% of new retired-worker beneficiaries waited until 70 in 2023, while 28% claimed at 62.
A 2.8% 2026 cost-of-living adjustment widens the dollar gap because each inflation increase applies to the lower or higher base benefit already locked in.
The tradeoff often hinges on cash needs, health and longevity: breakeven for waiting until 70 typically falls in the early 80s, so people who live beyond that usually come out ahead.
Social Security paid $1.63 trillion in the first quarter of 2026, and delaying can let retirees spend down savings earlier in exchange for a larger inflation-protected lifetime income stream later.