Q & A
Dear Rusty – I Want to do Everything Right When I Claim Social Security
Dear Rusty: I will be 62 in two years. I plan on signing up for SS at age 62, but I have heard there are details that are important when signing up. When it comes time, I want to make sure I do everything right. Can you help me understand? Signed: Claiming Soon
Dear Claiming Soon: Deciding when to claim your Social Security benefit is a decision you should make only after careful consideration of your personal circumstances. And details are, indeed, important. For example, if you claim at age 62 (when you first become eligible), your monthly SS benefit will be only 70% of the amount you would get by waiting until age 67 to claim. And there are other considerations as well, including:
• If you are still working and claim at 62, you will be subject to Social Security’s Annual Earnings Test (AET) which limits how much you can earn from working while collecting early SS benefits. The earnings limit changes each year, and for 2026 it is $24,480. If the annual limit after you claim early is exceeded, SS will take back $1 in benefits for every $2 you are over the limit. And, if your work earnings substantially exceed the annual limit, you may even be temporarily ineligible for early SS benefits (until you either stop working full time or reach your SS full retirement age). FYI, the AET lasts until you reach your FRA (age 67).
• The benefit reduction for claiming SS early is permanent. After you claim, you will only get increases for Cost-of-Living Adjustments (COLA) which occur annually according to inflation. FYI, the average annual COLA adjustment is about 2.5%.
• If you are married, the reduced benefit you get by claiming early will potentially be the basis of your spouse’s survivor benefit if you pass first. Surviving spouse benefits are based on the amount you are receiving at your death, thus waiting longer for a higher personal benefit may also provide your spouse with a larger survivor benefit as your widow.
• If you wait longer than age 62, your monthly benefit will continue to increase (by approximately 6% per year) until you reach your FRA, when you get 100% of the amount you are entitled to from a lifetime of working. FYI, you can even wait longer – up to age 70 – to claim an even higher monthly amount (8% more for each year of delay after FRA). At age 70, your SS benefit would be about 75% more than your age 62 benefit amount.
If you haven’t already done so, I suggest setting up your personal online “my Social Security” account at www.ssa.gov/myaccount to see what your SS benefits are estimated to be at various ages. Then, when you are closer to age 62, contact us again to talk about your specific personal circumstances at the time, and we can provide you with everything you need to know about applying for Social Security.
In the end, when claiming your Social Security benefits, you should consider your financial need, your health and life expectancy, your plans for working, and your marital status. We commend you for exploring this well in advance of becoming eligible and we will be here to assist when it is time for you to apply.
If you have any questions, email ssadvisor@amacfoundation.org or call and speak with an accredited Social Security advisor at (888) 750-2622