Your payment at 62 depends on your earnings history, not your age alone

The amount you receive if you claim Social Security at 62 is calculated from your average earnings over your working years — specifically, your 35 highest-earning years. Social Security does not give you a fixed amount at any age. Instead, it calculates a Primary Insurance Amount (PIA), which is the payment you would receive at your full retirement age. If you claim at 62, you get a permanent reduction from that amount.

The reduction is substantial. If your full retirement age is 67, claiming at 62 means you receive roughly 70% of your PIA for life. If your full retirement age is 66, the reduction is about 75%. These percentages are set by law and do not change year to year. The exact reduction depends on the month you were born and when you claim.

You cannot know your exact payment without contacting Social Security directly. The agency holds your earnings record and calculates your PIA based on that history. You can request an estimate through your my Social Security account online, by phone at 1-800-772-1213, or in person at your local Social Security office.

Key Takeaways

  • Your payment amount is based on your lifetime earnings record, not on when you claim, so two people born the same year will receive different amounts.
  • Claiming at 62 reduces your monthly payment by roughly 25% to 30% compared to what you would receive at full retirement age, and this reduction is permanent.
  • You can see an estimate of your payment by creating a my Social Security account online or by calling Social Security directly.
  • Your payment increases each year you delay claiming past 62, up until age 70, when the increases stop.

How Social Security calculates your Primary Insurance Amount

Social Security uses a three-step process to find your PIA. First, the agency indexes your earnings — it adjusts your past wages to account for inflation and wage growth in the economy. This means your earnings from 1990 are not compared dollar-for-dollar to your earnings from 2020; they are adjusted so the comparison is fair.

Second, Social Security selects your 35 highest-earning years and calculates your average monthly earnings. If you worked fewer than 35 years, the agency counts zeros for the missing years, which lowers your average. This is why people who took time out of the workforce — for caregiving, illness, or other reasons — often receive lower payments.

Third, Social Security applies a formula to your average earnings. The formula is progressive, meaning it replaces a higher percentage of low earnings than high earnings. In 2024, for example, the formula replaces 90% of your first $1,174 in average monthly earnings, 32% of earnings between $1,174 and $7,078, and 15% of earnings above $7,078. These dollar amounts change each year with inflation.

The permanent reduction for claiming at 62

If you claim at 62, Social Security applies a reduction factor to your PIA. The reduction is not a penalty for claiming early — it is an actuarial adjustment. Social Security assumes you will collect benefits for a longer period if you claim at 62 than if you wait until 67 or 70, so the monthly amount is lower to keep the total lifetime benefit roughly equal across different claiming ages.

The exact reduction depends on your birth year. People born in 1943 or later have a full retirement age of 66 or higher. If your full retirement age is 66 and you claim at 62, you receive 75% of your PIA. If your full retirement age is 67 and you claim at 62, you receive about 70% of your PIA. The reduction grows larger the younger you are at full retirement age.

This reduction applies to your own benefit only. If you are married and your spouse has a higher earnings record, you may also be may have access to to a spousal benefit, which has its own reduction rules. Divorced people with an ex-spouse may also have different options.

Why your estimate might change before you claim

If you request an estimate from Social Security today but do not claim until next year, your payment amount may be different. This happens for several reasons. If you continue working and earn more than you did in previous years, Social Security will recalculate your average earnings using your new record. If you had a very low-earning year that was in your top 35, a higher-earning year might replace it.

The formula itself also changes each year. Social Security adjusts the dollar amounts in the formula — the bend points — to account for inflation. A higher bend point means more of your earnings fall into the higher-replacement-rate bracket, which can increase your payment.

For these reasons, an estimate is useful as a rough guide but not a may provide of your exact payment. The estimate becomes more accurate as you get closer to your claiming date.

How much more you get by waiting past 62

For each year you delay claiming past your full retirement age, your payment increases by 8% per year, up until age 70. This is called the delayed retirement credit. If your full retirement age is 67 and you wait until 70, you receive 124% of your PIA — a 24% increase over what you would get at 67.

The delayed retirement credit is the same for everyone born in the same year, regardless of earnings. It applies only to your own benefit, not to spousal or survivor benefits. Once you reach 70, the credits stop accruing, so there is no financial advantage to waiting past 70 to claim.

Whether waiting makes financial sense depends on your health, family history, and how long you expect to live. If you live into your mid-80s or beyond, waiting usually results in a higher total lifetime benefit. If you have serious health problems, claiming at 62 may result in a higher total benefit over your remaining life.

What happens to your payment if you work after claiming

If you claim at 62 and continue working, Social Security will reduce your benefit if your earnings exceed a limit. In 2024, the limit is $23,400 per year. For every $2 you earn above that limit, Social Security withholds $1 from your benefit. This earnings test applies only until you reach your full retirement age.

Once you reach your full retirement age, the earnings test no longer applies, even if you continue working. Social Security will recalculate your benefit to account for the months you did not receive a payment due to the earnings test, so you do not lose that money permanently.

The earnings limit changes each year. You can find the current limit on the Social Security website or by calling the agency.

How to get your personal estimate

The most accurate way to learn what you will receive is to create a my Social Security account at ssa.gov. Once you log in, you can view your earnings record and see an estimate of your payment at different claiming ages — 62, full retirement age, and 70. The estimate is based on your actual earnings history and the current Social Security formula.

If you do not have an online account, you can call Social Security at 1-800-772-1213 and ask for an estimate. You can also visit your local Social Security office in person. Be prepared to provide your Social Security number and date of birth.

Social Security no longer mails benefit estimates automatically, so you have to request one. If you are within three months of claiming, Social Security will mail you a notice with your payment amount once you file.

Frequently Asked Questions

Will my payment increase each year after I claim at 62?

Yes. Social Security adjusts all benefits each year for inflation through a cost-of-living adjustment, or COLA. The adjustment is the same percentage for everyone and is based on the Consumer Price Index. In recent years, COLAs have ranged from 0% to 8.7%, depending on inflation.

Can I change my mind after I claim at 62?

You can withdraw your claim within 12 months of filing and repay all benefits you received. After 12 months, you cannot withdraw. You can suspend your benefits at full retirement age and let them grow until 70, but this is rarely done because you must repay all benefits received since you claimed.

Does my spouse's earnings affect my payment?

No. Your own Social Security payment is based only on your earnings record. Your spouse's earnings do not change your benefit. However, you may be may have access to to a separate spousal benefit based on their record, which has its own calculation and reduction rules.

What if I did not work for 35 years?

Social Security counts zeros for years you did not work. If you worked 30 years, five zeros are included in your average, which lowers your payment. There is no way to remove these zeros, but some people become may have access to to a spousal or survivor benefit that may be higher than their own benefit.

Is the payment I see in my estimate what I will actually receive?

The estimate is based on your current earnings record and assumes you will not work again. If you continue working and earn more, your payment may increase. The estimate also assumes current law; Congress could change Social Security rules in the future, which would affect payments.