Why Filing for Social Security at 62 Can Cost You

Filing for Social Security at 62 feels like a win. But for most people, it quietly costs hundreds of dollars a month for the rest of their life.

Zachary Mineur, CFA, CFP® was quoted in GOBankingRates on the real math behind early filing and why he advises most clients to wait:

“The allure of that monthly check coming is hard to pass up at age 62. But for most people I advise waiting until at least age 67 and in many cases until age 70.”

Filing at 62, which is five years before the current full retirement age of 67, permanently reduces your benefit by 30%. In dollar terms, a $2,500 monthly benefit at full retirement age drops to $1,750 at 62, a loss of $750 a month for life.

Beyond 67, benefits increase 8% annually until the maximum at age 70.