Claiming Social Security at 62 Has These 2 Hidden Pitfalls

Claiming Social Security when you turn 62 can be tempting. After all, 62 is the earliest age you can start collecting retirement benefits. And having that extra income sooner may sound appealing.

Now, you may be aware that if you claim Social Security at 62, you'll be looking at a reduced monthly benefit check for life. If your full retirement age is 67, filing at 62 will mean collecting benefits that are about 30% lower.

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You may be willing to accept smaller payments to get that money sooner. But claiming Social Security early goes beyond just getting reduced benefits. There are a couple of overlooked drawbacks you should know about before you decide to file for Social Security at the earliest possible point in time.

1. You'll get smaller cost-of-living adjustments

You may know that claiming Social Security at 62 gives you smaller benefits. But it's also important to realize that reduced checks will lead to smaller cost-of-living adjustments, or COLAs, each year.

To be clear, the size of your monthly benefit does not influence what COLA you get percentage-wise. In 2026, for example, Social Security benefits got a 2.8% COLA, and that raise applied to everyone collecting those monthly checks.

Rather, it's that if you start with smaller benefits by claiming Social Security early, each COLA that arrives will get a smaller increase dollar-wise. A 2.8% COLA applied to a $2,000 monthly benefit, for example, will be worth more than a 2.8% COLA on a $1,400 monthly benefit. That could be a big deal, because those COLAs provide key protection against inflation.

2. You'll have less guaranteed income when you may need it the most

Another less obvious drawback of filing for Social Security at 62 is that you're giving up guaranteed income. Social Security may be your only retirement income stream that can't run out. For example, your savings could be depleted over time.

That guaranteed income could become especially valuable during periods of inflation or stock market turbulence. If your retirement portfolio loses value, larger Social Security checks could help you cover your costs without having to sell investments when they're down.

But by claiming Social Security at 62, you're reducing your financial flexibility during periods when market conditions aren't favorable or when costs are more elevated than usual. And that could affect your peace of mind.

Know when an early claim makes sense -- and when it doesn't

Despite these drawbacks, filing for Social Security at 62 isn't always a bad decision. It could make sense to take benefits at 62 if you can't continue to work at that point and don't have enough savings to cover your living costs in full.

Filing for Social Security at 62 could also be a smart move if you don't expect to live a very long life. In that case, claiming at 62 could lead to a larger lifetime benefit, even if it reduces your monthly checks.

On the other hand, if you're able to continue working well into your 60s and don't have much retirement savings, it may make sense to delay claiming Social Security until full retirement age or beyond. And if you have good health and a family history of longevity, filing later could lead to more lifetime Social Security income.

Ultimately, many factors will need to go into your decision. The key either way is to realize that filing for Social Security at 62 won't just lead to smaller monthly checks in retirement. It could lead to reduced protection against inflation, less financial flexibility, and greater overall stress.