How early can you collect social security?

If you are eligible to claim Social Security benefits, you can decide to start collecting benefits early, at the full retirement age, or later after the full retirement age. Deciding when to take benefits depends on your circumstances like your cash needs, life expectancy, employment status, etc.

The earliest you can claim Social Security retirement benefits is age 62. However, you will receive a lower benefit than if you waited until the full retirement age to claim benefits. If your full retirement age is 66, and you claim benefits at age 62, your benefits will be reduced by 24%, or 30% if your full retirement age is 67. 

How much will you get if you retire at age 62?

If you claim benefits at age 62, your benefits will be reduced depending on your full retirement age i.e. age 66 and 67. If your full retirement age is 66, and you claim benefits at age 62, your benefits will be reduced by up to 25%. If your full retirement age is 67, and you claim benefits at age 62, your benefits will be reduced by up to 30%.

For example, a hypothetical $1,000 benefit would be reduced to $750 a month if your full retirement age is 67, and $700 if your full retirement age is 66. The monthly payments you receive will depend on several factors, including your earnings during your working years and the amount you paid into the Social Security system.

Common reasons to collect Social Security benefits early

There are several reasons you might consider taking Social Security benefits early before the full retirement age.

Life expectancy

If you are in poor health and you are unlikely to reach the average life expectancy, you might decide to take benefits early. For example, if you are 62 and you are unlikely to live beyond age 75, you can start collecting benefits as soon as you become eligible for benefits so that you can collect as much benefits while you can. Taking benefits early means you will receive reduced monthly checks for a longer period while delaying benefits means fewer but larger checks.

Cash needs

If you have immediate cash needs, and you are 62, it makes sense to claim benefits early. For example, if you retired early and you have insufficient resources to meet your retirement expenses, Social Security can provide funds needed to help you meet urgent expenses such as medical expenses and college education expenses.

Social Security funds can be a good source of income before you become eligible for other forms of benefits. Once you get off the ground and you no longer need the money, you can suspend your benefits without owing a penalty to allow future benefits to accumulate.

Alternative investments

If you delay taking benefits after the full retirement age, your benefits will grow by 8% for each year you delay benefits until age 70. The 8% return is higher than what most investment products pay.

If you think you can beat the 8% return, you can decide to collect benefits early and invest the money instead of leaving it in the government's control. If you plan to invest in the stock market, you should consider the volatility of the stock market, and the risk of losing your money.

Spousal benefits

If you are married, and you and your spouse are eligible for Social Security benefits, the higher earner can delay claiming benefits, and the lower-earning spouse can collect benefits sooner. The higher-earning spouse can wait until the full retirement age or later to receive a higher benefit.

If you are divorced, and the marriage lasted for 10 years or more, you can claim benefits based on your ex-spouse's record. You can receive up to 50% of your former spouse’s full benefit. Also, if your former spouse claims benefits based on your record, it won't affect the benefits you receive. If you are widowed, you can receive the higher of your retirement benefits or up to 100% of the deceased spouse's benefits.

Starting age for different types of Social Security benefits

Spousal benefits

When a worker starts claiming retirement benefits, the worker's spouse may be able to claim spousal benefits on the worker's earnings. The spouse must be age 62 or older, or caring for a qualifying child. A qualifying child is an unmarried child under age 16 or a child who is collecting disability benefits.

Survivor benefits

If your spouse is deceased, you can claim survivor benefits on the deceased spouse’s record starting from age 60, or 50 if you are disabled. If you are caring for a minor or disabled child of the deceased spouse, you can claim survivor benefits at any age. The surviving spouse will receive reduced benefits than if they waited until the full retirement age.

Social Security Disability Insurance

There is no age requirement to claim Social Security Disability Insurance (SSDI). However, you must have worked in a covered job and paid Social Security taxes over a specific period to qualify for SSDI. You must also demonstrate that the disabling condition meets Social Security's definition of disability and provide evidence that it prevents you from working.