How Much Will You Slash Your Benefits by Claiming Social Security at 62?
Age 62 is the most popular age to sign up for Social Security, and for good reason: It's the earliest age you can claim benefits and get your hands on that money. But doing so will cause your monthly benefits to go down, leaving you with less income -- for life. In fact, many seniors don't realize just how detrimental claiming benefits early is to their retirement, so if you're planning to sign up for Social Security the moment you're eligible, make sure you understand what sort of hit you'll be taking on that money.
Your Social Security benefits are calculated by taking your average monthly wage over your 35 highest-paid years on the job and then adjusting that figure for inflation. You're entitled to your full monthly benefit based on your earnings history once you reach full retirement age, or FRA. If you were born in 1960 or later, your FRA is 67. If you were born between 1943 and 1954, it's 66. And if you were born between 1955 and 1959, it's 66 and a certain number of months.
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