It’s 2025, and a surprising trend is shaking up retirement planning in the U.S.: millions of Americans are taking Social Security early, locking in their benefits at age 62 instead of waiting until the full retirement age (FRA) of 67. While this move may seem smart at first glance—especially if you need money now—it could cost you big time in the long run.
Let’s break it down. Whether you’re 62 and thinking about claiming, or you’re years away but want to plan ahead, we’re diving into why early claiming is spiking in 2025, what it means for your wallet, and how to make the best call for your future.
Millions Are Taking Social Security Early in 2025
| Topic | Details |
|---|---|
| Trend | Over 4 million Americans expected to file for Social Security in 2025, a 15% increase from last year |
| Filing Age | Full Retirement Age is 67 for those born in 1960 or later |
| Penalty for Early Filing | Up to 30% permanent reduction in monthly benefits if filed at age 62 |
| 2025 Earnings Limit | $23,400 before benefits are reduced if you work and claim early |
| Future Cuts | Social Security trust fund projected to run short by 2033, possibly slashing benefits by 23% |
| Best Age to File | 70, for max monthly benefit (up to 24% more than at 67) |
| Tool to Use | SSA Retirement Estimator for personalized calculations |
In 2025, more Americans than ever are grabbing Social Security early—but it’s not always the best move. With reductions up to 30%, plus the looming risk of future cuts, the smart play might be to wait if you can. That check may be smaller now, but patience could pay off in the long haul.
Think about your health, your job, your spouse, and your future income needs. Use the tools and talk to an advisor before you make the leap. Because when it comes to your retirement, every choice echoes for decades.
Why Are People Filing Early in 2025?
Let’s be real—uncertainty is in the air. Talk of Social Security going broke, the rising cost of living, and folks just trying to stretch every dollar has led to a surge in early claims. According to CBS News, early claims jumped by 17% through May 2025.
Other factors?
- Fear of future cuts to Social Security if Congress doesn’t step in.
- Job market shifts due to automation and layoffs hitting older workers.
- Increased access to retirement tools nudging folks to act sooner.
What’s the Real Cost of Filing Early?
Choosing to file at age 62 might feel like hitting the jackpot, but it’s more like winning the prize only to find it’s been shrunk in the wash. Here’s the deal:
- Claiming at 62 instead of 67 means up to a 30% permanent cut in your monthly check.
- Waiting until 70? You could see 24% more than if you waited till 67.
Example: Say your full retirement benefit is $2,000/month at age 67. If you claim at 62, you get just $1,400/month. Over 20 years, that’s a $144,000 difference—not pocket change.
Plus, future cuts might shrink that check even more. The 2025 Social Security Trustees report says that by 2033, the trust fund could run dry—forcing a 23% cut unless Congress steps.
Added Financial Strain: Inflation and Healthcare
- Rising healthcare costs: Fidelity estimates a 65-year-old couple retiring in 2025 will need about $350,000 just for healthcare.
- Inflation pressure: Even with COLAs, your money buys less over time.
Understanding Full Retirement Age and Delayed Retirement Credits
Here’s the scoop:
- Full Retirement Age (FRA): 67 for folks born in 1960 or later
- Earliest Age to File: 62
- Latest Age to File for Max Benefits: 70
If you delay filing past FRA, you earn delayed retirement credits. For each year you wait, your benefit increases by around 8%.
Pro tip: Waiting from 67 to 70 can boost your benefit by 24%.
Can You Work and Still Collect Benefits?
Yes—but there’s a catch if you file early.
- Earnings limit in 2025: $23,400
- Earn more than that? $1 is withheld for every $2 over the limit.
- The year you hit FRA, the limit jumps to $62,160 with a more lenient $1-for-$3 reduction.
Should You File Early? Ask Yourself These Questions
Here’s a simple checklist to help you decide:
1. Do you need the money now?
If you’re out of work, have no savings, or dealing with medical bills, early claiming might be necessary.
2. What’s your health like?
If you don’t expect to live well into your 80s, you may come out ahead by claiming sooner.
3. Are you married?
Filing early can impact your spouse’s survivor benefits. If you’re the higher earner, delaying could help protect their future.
4. Are you still working?
If so, consider waiting until at least FRA to avoid benefit reductions.
5. What other income sources do you have?
If you can lean on a pension, 401(k), or part-time gig, delaying Social Security might be the better move.
Real-Life Stories: Meet the Retirees
Mike, 62, Florida
Mike was laid off in 2024 and filed for Social Security early. Now, he gets $1,380/month, which barely covers rent and groceries. “If I’d known the hit was this big, I would’ve tried gig work instead,” he says.
Carol and James, 67 & 70, Ohio
Carol filed early; James waited until 70. They now pull in over $4,000/month combined—comfortably funding retirement. “It was tough waiting, but it paid off,” says James.
Comparison Table
| Feature | Taking Social Security at 62 | Taking Social Security at FRA (67) | Taking Social Security at 70 |
| Monthly Benefit | Permanently reduced by up to 30% | 100% of your calculated benefit | Increased by up to 24% |
| Total Lifetime Benefit | Lower, depending on lifespan | Higher than claiming early, depending on lifespan | Highest, depending on lifespan |
| Financial Flexibility | Can provide immediate cash flow | Provides a stable income at a higher rate | Provides the highest possible monthly payment |
| Impact on Spouse | May result in a lower survivor benefit | Standard survivor benefit | May result in a higher survivor benefit |
How to Maximize Your Social Security Benefits
Here’s how to make the most of your monthly check:
Delay, delay, delay (if you can)
Waiting until 70 gives you the biggest check. Think of it like a guaranteed 8% return each year you wait.
Coordinate with your spouse
Sometimes it makes sense for one spouse to file early while the other delays. This strategy can maximize household income and survivor benefits.
Use a Social Security calculator
Plug your info into the SSA’s Retirement Estimator to get personalized numbers.
Talk to a financial planner
A pro can help you weigh trade-offs, including taxes, life expectancy, and Medicare timing.
FAQs
Q: Can I undo my decision if I regret filing early?
A: Yes, but only once. You must do it within 12 months and repay all benefits received.
Q: Will Social Security really run out of money?
A: Not exactly. Even if the trust fund is depleted by 2033, payroll taxes would still cover about 77% of benefits. But that’s still a 23% cut.
Q: Do cost-of-living adjustments (COLAs) apply to early filers?
A: Yes. COLAs are applied to your benefit every year, no matter when you start.
Q: Is it better to take benefits early and invest them?
A: Maybe. But you’d need a consistent return of 7–8% just to match the delayed benefit increase. And that’s not guaranteed.
Q: Can I take spousal benefits and delay mine?
A: In some cases, yes. Especially if born before 1954. But for most, filing one means filing both.
