Penelope S. has spent decades working in school administration in Burbank, California. Now that she’s 62, she’s eligible to claim Social Security early. But the numbers are making her anxious.
The decision to claim at 62 instead of waiting comes with a permanent reduction to her monthly check. Over 20 years, that choice could cost her tens of thousands of dollars. But Penelope is tired of working and her husband’s age is also factoring into the decision.
I talked to Penelope about the math behind her choice and why she’s considering filing early despite the financial hit.
Taking the 30% Cut
When you claim Social Security at 62, you lock in a 30% reduction from your full retirement age benefit. For Penelope, that’s a big deal.
Her estimated benefit at full retirement age (67) is about $1,976 per month, which is close to the national average for 2026. If she claims at 62, that drops to $1,383 per month.
“I knew there would be a reduction, but seeing that I’d lose almost $600 every single month for the rest of my life is hard to swallow,” Penelope said. “That’s $7,116 less per year just because I can’t wait five more years.”
The reduction is permanent. It doesn’t go away when she reaches 67. Her benefit stays at that lower level for life, and any cost-of-living adjustments get calculated on that reduced amount too.
Be Aware: 3 Little-Known Social Security Rules That Could Save You Thousands
Read Next: 6 Safe Accounts Proven To Grow Your Money Up To 13x Faster
The 20-Year Math
If Penelope lives to 82, claiming at 62 instead of 67 will cost her $23,712 loss in total Social Security income.
Here’s how it breaks down. By claiming at 62, she’ll receive $1,383 per month for 240 months (20 years), totaling $331,968. If she waits until 67, she’ll get $1,976 per month for 180 months (15 years from 67 to 82), totaling $355,680.
Waiting until 70 changes the math again. Her benefit would jump to $2,450 per month thanks to delayed retirement credits. Over 12 years (from 70 to 82), that’s $352,800 total. So, claiming at 62 versus waiting until 70 costs her $20,832.
“I keep running these numbers over and over, and they make my head spin,” Penelope said. “Twenty-three thousand dollars sounds like a lot of money to leave on the table, but it also assumes I make it to 82.”
The calculation gets even more dramatic if she lives longer. At 85, Penelope said the cost of claiming early rises to over $47,000 compared to waiting until 67.
Why She’s Considering Early Filing
Penelope has worked in school administration for 38 years. She’s tired.
“I’m exhausted by the politics, the budget cuts, the parents, all of it,” she said. “My husband is 68 and already retired. We want to travel and spend time together while we’re both still healthy enough to enjoy it.”
Her husband claimed his Social Security at his full retirement age and receives about $2,100 per month. Between his benefit and her reduced benefit, they’d have $3,483 per month from Social Security alone.
They’ve run the numbers on their expenses. Their mortgage is paid off, and their retirement savings are in decent shape. The reduced benefit isn’t ideal, but it works for their budget.
Is It a Good Idea To Claim Social Security Early?
For Penelope, the answer is yes.
Penelope knows about the reduction in benefits, and it’s still the right move for her. She’s done the research and talked to a financial planner. She understands she’s trading guaranteed future money for flexibility and rest right now.
“Maybe it’s not the smartest financial move, but I just don’t know how many good years I have left,” Penelope said. “I’d rather have less money and more time to use it than die before I ever get to enjoy retirement.”
The decision is hers to make. Social Security is her money after paying into the system for nearly four decades. Whether she files at 62, 67 or 70, she’s earned those benefits. The question is just when and how much.
More From GOBankingRates
- 6 Kirkland Clothing Items You Should Buy in February To Maximize Savings
- Jerry Seinfeld's Social Security Check vs. the Average American's
- 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
This article originally appeared on GOBankingRates.com: I’m 62 and Want To Claim Social Security Early — Here’s How Much It Will Cost Me Over 20 Years
