Best Social Security Claiming Strategy at 62: What Retirees Need to Know Before They Decide

Best Social Security Claiming Strategy at 62: What Retirees Need to Know Before They Decide

When you turn 62, a huge decision looms: Should you claim Social Security now, or wait? This single choice can add up to a difference of hundreds of thousands of dollars in lifetime benefits. Over my years helping retirees navigate this question, I’ve seen how the right strategy brings financial peace of mind—and the wrong one creates unnecessary strain.

👉 Want to learn how to retire without the worry of running out of money in retirement? Click here to watch this video

Why Listen to Me?

As a CERTIFIED FINANCIAL PLANNER™, I’ve worked with countless retirees to optimize their income plans. I specialize in helping people transition from work to retirement with confidence, clarity, and a complete strategy that includes Social Security, tax planning, investments, and healthcare. The difference? Real, stress-free income that lasts a lifetime.

Summary
  1. The Social Security trust fund is projected to be depleted by 2033.
  2. You can still receive benefits after that, but likely only 79% of your scheduled amount.
  3. Claiming early at 62 locks in a 30% permanent reduction from your full benefit.
  4. Delaying to 70 gives you a 24% bonus over full retirement benefits.
  5. Your decision impacts not just you, but your surviving spouse.
Key Question: Should You Claim at 62?

The fear of a failing Social Security system drives many to grab benefits as soon as they’re eligible. But the data (and history) tell a different story. In 1983, Congress made significant reforms to save the system—and it's very likely we’ll see adjustments again. Historically, fixes like gradually raising the retirement age, adjusting payroll taxes, and modifying income limits have kept the system solvent.

Bottom line: Claiming early may cost you far more than it saves.

The Impact of Claiming Early

Reduced Monthly Income

Example: If your full retirement benefit is $3,500/month at age 67:

At 62, you’ll receive about $2,450 (a 30% cut).

Your spouse may also receive less in survivor benefits.

Locked-In Lower Base

Once you claim early, your base payment never jumps to full retirement level. It grows only by the annual cost-of-living adjustment (COLA), not a benefit reset.

Medicare Deduction

Starting at 65, your Medicare Part B premiums will be automatically deducted from your Social Security check, reducing your net income even further.

Case Study: Thomas and Hannah

Situation:

Both age 62, ready to retire.

Full benefits: Thomas = $3,500/mo, Hannah = $3,000/mo.

If they both claim now:

Thomas receives $2,450, Hannah gets $2,100.

Total: $4,550/month

Break-Even Analysis

We ran five scenarios:

  1. Both claim at 62 = $2.1M lifetime benefits
  2. Both wait until 67 = $2.4M
  3. Thomas delays to 70, Hannah claims at 62 = $2.5M
  4. Thomas at 70, Hannah at 67 = $2.6M
  5. Both wait until 70 = $2.7M

Conclusion: Delaying benefits could net an additional $600,000+ in lifetime value depending on longevity.

Break-Even Point

To justify delaying to age 70, Thomas and Hannah would need to live past age 78. Statistically, that’s highly probable for at least one spouse.

Survivor Benefit Consideration

If Thomas passes away first, Hannah will receive his full benefit as a survivor—not both checks, just the higher one. The longer Thomas delays, the more Hannah receives.

  • If both claim early: Survivor benefit = ~$58,000/year
  • If Thomas delays to 70: Survivor benefit = ~$87,000/year

That’s a $30,000 annual difference, which can be life-changing in later years.

The Right Strategy Is Personal

There is no one-size-fits-all answer. To truly maximize your benefits, we have to combine:

  • Social Security strategy
  • Investment withdrawals
  • Pensions or rental income
  • Tax planning
  • Healthcare costs
What to Do Next
  1. Create a Social Security account at ssa.gov and review your benefit projections.
  2. Run a break-even analysis with different scenarios (we can help).
  3. Build a complete retirement income plan that coordinates Social Security with all your other assets.

👉 Want to learn how to retire without the worry of running out of money in retirement? Click here to watch this video

FAQs

Q: Will Social Security go bankrupt?

A: Not likely. Even if no reforms are made, the system is projected to still pay ~79% of benefits. Legislative fixes are expected.

Q: Should both spouses delay to 70?

A: Often, the higher-earning spouse should delay to boost the survivor benefit. The lower earner may claim earlier, depending on the plan.

Q: Is this strategy still helpful if I have a pension?

A: Yes. Social Security is inflation-adjusted, and coordinating it with pension income can extend portfolio longevity.



Disclaimer: Case studies are hypothetical and do not relate to an actual client of Lock Wealth Management. Clients or potential clients should not interpret any part of the content as a guarantee of achieving similar results or satisfaction if they engage Lock Wealth Management for investment advisory services.