If you decide to start claiming Social Security benefits the moment you become eligible at 62, you’ll indeed receive the maximum number of monthly checks. But that doesn’t necessarily mean you’re getting the highest possible lifetime benefits.
Claiming early can lead to a reduction in your monthly payments by as much as 30%. Yet, there are strategies that might help ease this penalty and markedly boost your benefits in just one year.
What is the average Social Security benefit for a 62-year-old?
As of December 2024, the average Social Security recipient who is 62 can expect to receive around $1,342 a month. This payment will actually be distributed in January 2025, and it won’t yet reflect the upcoming 2.8% cost-of-living adjustment (COLA) for 2026.
Considering that adjustment, the average monthly benefit for someone turning 62 rises to approximately $1,380. This translates to an annual benefit of about $16,560. Although that’s a notable amount, it’s still significantly lower than the average retirement benefit of $2,081 per month projected for April 2026.
For some individuals, accepting that lower amount can be worth it for the sake of more frequent payments. Conversely, if you prefer not to change too much about your approach, there are ways to enhance that monthly check in just a year.
How to add an extra 5% to your Social Security check within a year
The penalties for claiming early are what lead to many 62-year-olds receiving notably less in Social Security benefits compared to the average. Those who take benefits before their full retirement age (FRA)—which is 67 for most today—face reduced checks.
Specifically, you’ll lose 5/9 of 1% for each month during the initial 36 months of early claiming, and then 5/12 of 1% for subsequent months. In simpler terms, delaying your Social Security benefits past age 62 will gradually increase your check. For instance, claiming at 62 means you’d face a 30% reduction compared to what you’d receive if you waited until your FRA.
If you wait just a year and claim at 63, you’d receive 75% of your FRA benefits instead of 70%. This adjustment would raise the estimated average benefit from $1,380 to $1,479 a month, adding a solid $99. Over 20 years, that could mean receiving an additional $23,760 in benefits, not even counting future COLA adjustments.
Of course, if your savings are minimal, postponing your Social Security benefits for a year might not be feasible. Still, even waiting a few months could yield positive results. You can claim as soon as you hit 62, but ensure you weigh the trade-offs carefully before making that decision.
