Question: I’m 62 and am worried about the future of Social Security. Especially considering that in just a few years, we are projected to pay less than expected. Should I get it early?
Answer: This is a question financial planners often get, especially when Social Security is making headlines, just like this year.
The Social Security Administration announced in February that it would cut the workforce by 7,000 at an already 50-year low, raising concerns about declining services and access to benefits.
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In June, the Social Security Councilor’s annual report predicted that trust funds that pay benefits to retirees and their survivors would be drained in 2033, a year earlier than previously estimated. It was promised that benefits would be reduced by 23% from 2025 if Congress did not support the fund by then.
You can’t get much help from the latest round of law. President Trump had suggested that the so-called One Big Beautiful Bill (OBBB) would eliminate taxes on Social Security benefits, but that provision never signed the final version of the law on July 4th. Instead, OBBB offers additional tax credits to more than 65 people who meet certain income restrictions. However, the deduction applies only between 2025 and 2028. So, given that you’re 62, you can’t claim the deduction until 2028 when you turn 65. There is no guarantee that the deduction will exceed 2028.
“For clients, it’s routine to ask whether 62 should receive benefits out of concerns that Social Security’s finances are uncertain and future cuts could be implemented,” says Patrick Huey, a certified financial planner with an independent plan for victory in Florida. “My answer is clear.
Social security with cost-of-living adjustments is a key source of income for most retirees, so it is important to argue that benefits are important. The best times for you will depend on many factors, including your health, retirement savings, whether you are married or still working.
If you are delaying social security
A 62-year-old Social Security Retirement Benefit (as early as possible) claim will permanently reduce 30% compared to waiting until full retirement age of 67. Furthermore, if the trust fund is exhausted within a few years, it may apply to both future and current beneficiaries, unless exceptions are engraved for a particular beneficiary.
“So if you reduce your benefits early, you risk locking up with both an early charge penalty and an overall board cut,” says Huey.
Instead, many financial planners advise delaying benefits by at least 67 years old to complete retirement age, or by age 70 to receive the maximum possible benefits. Delaying claims beyond the full retirement age of 70 each year will increase your annual benefits by 8%. That’s something that even the stock market can’t guarantee. Furthermore, future cost-of-living adjustments are based on higher benefits. This means that it will be added to your monthly check.
Delays can also optimize the benefits of your spouse survivors if you are married.
Also, please note that if you are still claiming Social Security before your retirement age, you will be subject to a revenue test. This will temporarily reduce your profits if your income exceeds a certain limit. Once you reach full retirement age, Social Security will readjust your interests upwards and explain your withholding benefits
If you are to insist early
Huey says that if you have serious health conditions that have shortened your average lifespan, it makes sense to argue with 62. If you are insufficient in savings and need a Social Security check to meet your costs, you may need to claim early.
However, before your pre-retirement age, you may argue that a full retirement age can be a good strategy if it fits your overall retirement plan, says Maggie Beach, CFP and Certified Public Accountant at Nextgen Financial Services in Naperville, Illinois.
“When I talk about social security optimization, I don’t want to say, ‘Let’s make the most of what we can get out of social security,'” says Beach. “I’m like, ‘Let’s make the most of it and really optimize the overall plan.’
For example, she has worked with married couples facing huge tax bills due to the required minimum distribution (RMD). These forced withdrawals from their traditional IRA began at the age of 73. To avoid that, they chose to gradually convert the accounts to a Ross IRA, which does not have an RMD and future withdrawals are tax-free. However, conversion causes a tax bill on remittances transferred to Ross.
Beach said the analysis showed that it would be more advantageous for spouses with low Social Security benefits to submit before full retirement age and use the money to pay the conversion tax bill. This allows the larger Social Security benefits of other spouses to continue growing up to the age of 70.
“The decisions we argue will actually be more about how it works, maximizing overall retirement income and minimizing lifetime tax,” says Beach.
$138,000 Questions
Most financial advisors like Huey recommend that you maximize your profits and take Social Security in a way that matches your own retirement plan. Additionally, it is important to note that Social Security is not bankrupt and will continue to pay benefits. However, if your retirement plan assumes that Social Security benefits will not change, it can be a troubling surprise if Congress cannot “adjust” Social Security by 2033. The event is expected to see a 23% decrease in benefits from 2035 when they were 72 years old.
Here’s how a typical monthly Social Security check changes: The average retiree received $2002.39 in May, and a 23% reduction would result in the loss of around $460.55 a month, or $5,526.60 a year.
How much will the 2033 shortfall in Social Security cost? Pensionbee’s analysis shows that it’s a whopping $138,000. The survey assumes that you will be resigned at retirement age (67), withdrawing 4% per year, and your portfolio will return 5% each year.
That shortage is shocking, but it is not yet justified to justify taking Social Security early (at age 62) just to make up for the difference. This is because a steeper decline than the expected 23% profit, as early claims reduces potential profit by 30%. Additionally, as Huey explained above, you might lock both early claim hits and 23% cuts. Furthermore, Congress could “save” Social Security before 2033.
Interactions for early claimants
Yes, in some cases, you can stop and resume Social Security benefits. If you go ahead and claim at age 62 and later begin to regret it, you can range from up to 12 months from the time the benefits are approved to withdraw your application. You will also need to repay the profits you receive. After that, it becomes as if you never apply and your profits continue to grow.
New Social Security Applications are being uploaded
It is understandable that the financial shortage in Social Security encourages a 62-year-old child to consider claiming profits as soon as possible.
In fact, according to the Social Security Administration, applications for retirement benefits surged early in 2025, up about 16% for the first six months of the year compared to the same period in 2024. More recently, applications have returned to normal levels, said Michael Stevens, the Associate Chief Coefficient of the Social Security Administration, in a recent webinar sponsored by the American Academy of Actuaries.
Part of the increase in applications comes from new laws that allow certain public sector employees and their spouses to receive retroactive and increased benefits.
“The other factors that may be playing here are fears with the economy and anxiety associated with potential changes to Social Security. People may be trying to get applications to get on the role,” Stevens said. “They are also considering bankruptcy.”
This is not the first time Social Security has faced bankruptcy. Lawmakers in 1983 stepped up to reform the program months before benefits were cut. Again, many hope that politicians seeking reelection will come up with solutions to avoid cutting profits for tens of millions of voters.
