Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMaurie BackmanSat, August 1, 2026 at 11:21 PM GMT+2 4 min readQuick ReadClaiming Social Security at 62 instead of 67 permanently cuts your monthly benefit by 30%, costing the average retiree roughly $150,000 over 20 years.Because cost-of-living adjustments are percentage-based, starting with a smaller benefit compounds the loss further every year you collect.Claiming early makes sense if you have poor health, a short life expectancy, or urgent income needs like job loss in your 60s.Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.One of the most critical retirement planning decisions you'll have to make is figuring out when to claim Social security. While you're allowed to start collecting benefits as early as age 62, waiting until full retirement age (FRA) can increase your monthly checks substantially.Caftor / Shutterstock.comIf you were born in 1960 or later, your FRA is 67. Filing for benefits at 62 results in a roughly 30% reduction compared to waiting until 67.You may be willing to take the hit on your Social Security benefits on a monthly basis. But if you file at 62, you may not realize just how much income you could end up leaving on the table in the course of your lifetime.How claiming Social Security at 62 could cost you $150,000Everyone's Social Security benefit is different. Yours is based on your personal wage history coupled with your filing age.The average retired worker today, however, receives a monthly Social Security benefit of about $2,084. Claiming that same benefit at 62 results in a $625 monthly reduction.Losing out on $625 a month means getting $7,500 less in Social Security per year. Over a 20-year retirement, that's approximately $150,000 in benefits you're potentially giving up.And that's before accounting for annual cost-of-living adjustments. Because those adjustments are calculated as a percentage of your benefit, starting with a larger monthly check means larger dollar increases over time as well._________________________________What's Your Number...?Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)__________________________________________Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info