Turning 62 is an exciting milestone, as it marks the official eligibility for Social Security benefits. For many, it’s a moment of relief after years of work, signaling the beginning of their retirement journey. However, applying for Social Security isn’t as simple as it seems. It’s a decision that could have a lasting impact on your financial future. If you’re planning to apply for benefits in 2025, there are a few things you need to be aware of before you make your claim.
1. You Can’t Claim Benefits Until You’re 62 for the Entire Month
While it’s possible to apply for Social Security benefits up to four months in advance, you won’t be eligible to receive benefits in the month you turn 62. This is because you need to be 62 for the full month before you qualify for Social Security checks. For example, if you turn 62 on the 21st of a month, you won’t be eligible to receive benefits until the following month.
Here’s how the timing works:
- If you’re born on the 1st or 2nd of the month, your birth month will be your first month of eligibility.
- If you’re born on any other date, you’ll have to wait until the month after your birthday to begin claiming benefits.
In addition to this, Social Security payments are made in the month following your eligibility. For instance, if you turn 62 on March 21, 2025, you won’t receive benefits until April 2025. Your first payment will come in May 2025, and the day you receive your check will depend on the day of the month you were born:
- Born between the 1st and 10th: Check arrives on the second Wednesday of the month.
- Born between the 11th and 20th: Check arrives on the third Wednesday.
- Born between the 21st and 31st: Check arrives on the fourth Wednesday.
So, in the example above, you might turn 62 in March 2025, but your first check won’t arrive until May 28, 2025. It’s important to plan your finances accordingly to cover your expenses during the waiting period.
2. Claiming at 62 Could Permanently Reduce Your Monthly Benefit
When you claim Social Security benefits before your full retirement age (FRA), you will face a permanent reduction in your monthly benefits. Your FRA depends on the year you were born, but it typically falls between 66 and 67 years old.
Claiming benefits at age 62 could reduce your monthly check by as much as 25% to 30%. For example, if your FRA is 66, the reduction is 25%, which would bring your $1,967 average monthly benefit in 2025 down to $1,377 per month. If your FRA is 67, the reduction could be as much as 30%.
While it’s tempting to claim Social Security early, it’s important to consider the long-term impact on your finances. Early claims reduce your monthly benefits, which means you’ll have less money to live on each month for the rest of your life. However, in some cases, claiming early may make sense, especially if you have a short life expectancy or lack other sources of income. But if you can afford to wait, delaying Social Security could lead to larger lifetime benefits.
If you wait past your FRA to claim benefits, you can continue to increase your benefits by two-thirds of 1% per month until you reach the age of 70. This could help maximize your monthly checks.
3. Claiming Early Can Lower Survivors Benefits for Your Family
One of the key benefits of Social Security is the survivor benefits it provides to your spouse and dependents after you pass away. If you haven’t yet started claiming Social Security, these benefits are based on your primary insurance amount (PIA) – the benefit amount you’re entitled to at your full retirement age.
However, if you begin claiming benefits at 62, you will reduce not only your monthly checks but also the survivor’s benefits available to your family. This means your spouse or dependents could receive less money from Social Security after your death if you claim early. For this reason, it might be wise to wait until you’re financially stable before claiming Social Security benefits.
It’s important to note that spousal benefits work differently. A spouse can receive up to half of your PIA, regardless of when you claim benefits. But they can’t claim spousal benefits until you sign up for Social Security. Additionally, if your spouse applies for their benefits before their FRA, they could see a reduction in their checks as well.
If you’re unsure about your options, it’s best to do your research and reach out to the Social Security Administration to get clarification on how your benefits might be affected. Remember, if you change your mind within the first 12 months of claiming, you can undo your decision, but you’ll need to pay back any benefits you’ve already received, which may not be feasible for everyone.
Conclusion
Claiming Social Security benefits is a big decision, and it’s not one to be taken lightly. If you’re turning 62 in 2025, you need to carefully weigh the pros and cons of applying early. While it may provide immediate relief, it could reduce your benefits in the long run, especially if you claim before your full retirement age. It may also impact the survivor’s benefits available to your loved ones.
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