Taking Social Security at 62 may reduce your lifetime benefits

Most Americans claim Social Security at 62, but analyses cited in the article indicate waiting until 70 often increases lifetime benefits; the program faces a projected funding shortfall by 2032.

Most Americans become eligible for Social Security at 62, and that age remains the most common time to start benefits. Claiming earlier increases the number of checks but lowers the monthly payment. Analyses cited in the article find that waiting until age 70 can produce higher lifetime benefits for many retirees, with one paper estimating a typical loss of $182,370 for those who claim before 70. At the same time, Social Security pays about $1.5 trillion annually and is reported to face a projected shortfall as soon as 2032. Key points: - Social Security spends about $1.5 trillion per year and is projected to face a funding shortfall by 2032. - Age 62 is the most common claiming age; more than 90% of Americans claim before age 70 and over one in five claim at 62. - Research cited indicates waiting until 70 often increases lifetime Social Security income; one scholarly paper estimated an average potential loss of $182,370 for those who claim earlier. - Taking benefits early and investing them could outperform waiting in some scenarios, but experts note the approach carries investment risk and depends on lifespan and returns. Summary: Choices about when to claim benefits can materially change lifetime retirement income, and concerns about program funding have influenced some people's decisions to claim early. Legislative or policy changes to address Social Security's projected shortfall are widely discussed, but the timing and specifics of any actions are undetermined at this time.