Considering an Early Retirement Age for Social Security? Here's What You Need to Know First

When you reach 62, you become eligible to start collecting Social Security benefits. Many people jump at this opportunity without fully understanding the long-term consequences. However, if you claim at an early retirement age rather than waiting until your full retirement age of 67 (for those born in 1960 or later), your monthly payments will be permanently reduced. The question isn’t whether you can file early—you can—but whether you should.

Why Waiting Until Full Retirement Age Matters

The math is straightforward: every year you delay claiming after 62, your benefit amount increases. By waiting until your full retirement age, you’ll receive your benefits at 100% of the calculated amount. If you file at 62 instead, you’re looking at a substantial and permanent cut to every check you receive for the rest of your life. This might seem acceptable if you need the money now, but it’s worth running the actual numbers before making this irreversible decision.

For example, if you’re planning to reach Medicare eligibility at 65, don’t assume you should claim Social Security at the same time. Even a three-year difference between 62 and 65 creates a noticeable gap in your monthly income. The longer you can afford to wait, the bigger your eventual payments will be.

Your 12-Month Window to Reverse an Early Filing

Here’s the good news: if you’ve already claimed Social Security at an early retirement age and now regret it, you’re not completely stuck. Social Security has a lesser-known rule that allows each person a single do-over opportunity during their lifetime.

To take advantage of this, you must follow two strict requirements:

1. Withdraw within 12 months: You must submit your withdrawal application within 12 months of your original claim date.
2. Repay all benefits received: You’ll need to return every dollar the Social Security Administration has paid you since you started collecting.

Both conditions must be met. If you’re already past the 12-month mark and didn’t know about this option, your window has closed. And if you lack the funds to repay what you’ve received, you won’t be able to reverse your decision. But if you can satisfy both requirements, you’ll get another chance to file and potentially lock in significantly larger monthly benefits going forward.

Making a Smarter Social Security Decision from the Start

The best strategy is to think carefully before claiming at an early retirement age in the first place. Don’t rush into filing just because you become eligible. Instead, evaluate multiple scenarios: What if you wait until 65? What if you hold out until 67 or even 70?

Each scenario will show you different outcomes. The breakeven point where waiting becomes financially beneficial typically occurs in your mid-70s, depending on your life expectancy estimates and personal circumstances. Running these numbers—or better yet, consulting with a financial advisor—can help you make an informed choice rather than one driven by emotion or urgency.

If you’ve already made a claim you regret, understanding these rules gives you the information needed to explore your options. Social Security is one of your most important retirement income sources, and the decision about when to claim deserves careful consideration rather than hasty action.