Social Security early claims cut benefits and trigger earnings test for working retirees

Claiming Social Security at age 62 yields an average monthly benefit of $1,424, roughly 30% less than the amount earned by waiting until full retirement age (67 for those born in 1960 or later). The reduction is permanent, meaning a retiree who would receive $2,000 at full retirement age sees the payment drop to about $1,400 when filing at 62.

People who continue working while receiving benefits before reaching full retirement age are subject to the earnings test. In 2026, earnings over $24,480 are reduced by $1 for every $2 earned (or $1 for every $3 earned after reaching full retirement age that year). Withheld amounts are later repaid as a one‑time benefit boost once the retiree reaches full retirement age, but the overall lifetime benefit remains lower than if the claim had been delayed. Waiting to apply increases the monthly benefit each month up to age 70 and eliminates the earnings‑test reduction.

For retirees with low current income, an early claim may still be sensible, but most workers risk reduced checks and potential withholding if they keep earning above the test thresholds.