Claiming Social Security at age 62—the earliest possible age—is a popular but consequential choice. For the 2026 tax year, this decision is particularly significant because the Full Retirement Age (FRA) has officially reached its maximum of 67 for everyone born in 1960 or later.

The Permanent Reduction

If you turn 62 in 2026, your Full Retirement Age is 67. Claiming at 62 results in a permanent 30 percent reduction in your monthly benefit.

  • A $2,000 monthly benefit at age 67 would be reduced to approximately $1,400 if taken at 62.
  • This reduction is not temporary; it lasts for your entire life and also reduces the base amount used for all future Cost-of-Living Adjustments (COLAs).

The 2026 Earnings Test

One of the biggest risks of claiming at 62 is the “Earnings Test” if you plan to keep working. For 2026, the rules are:

  • The Limit: You can earn up to $24,480 per year without penalty.
  • The Penalty: For every $2 you earn above that limit, the Social Security Administration will withhold $1 in benefits.
  • The “Payback”: This money isn’t gone forever; once you reach age 67, your benefit will be recalculated upward to account for the months your benefits were withheld.

The “Break-Even” Math

Deciding whether to take early benefits often comes down to a “break-even” analysis—the age at which the total value of higher delayed payments surpasses the total value of the smaller payments you started receiving at 62.

  • For most 2026 retirees, the break-even point is between age 78 and 80.
  • If you believe you will live well into your 80s or 90s, waiting is mathematically superior.
  • If you have immediate health concerns or an urgent need for cash flow, taking the money at 62 may be the more practical choice.

Impact on Survivor Benefits

If you are the higher-earning spouse, claiming at 62 can have a negative impact on your partner. Survivor benefits are based on the amount the deceased worker was receiving at the time of death. By locking in a lower monthly check at age 62, you are also potentially locking your surviving spouse into a lower benefit for the rest of their life.

Bridge to Medicare

It is important to remember that while Social Security is available at 62, Medicare eligibility does not begin until age 65. If you retire at 62 and take Social Security, you must have a plan to cover health insurance for those three “gap” years. Private insurance or COBRA can be expensive and may consume a large portion of your early Social Security checks.

Source: Social Security Administration (SSA) Publication No. 05-10035; and AARP, “The Pros and Cons of Claiming at 62” (2026 Edition).