Social Security is such a major program in the US for the older population to provide economic security in retirement. The program compensates for years of hard work and provides certainty of income. However, have you asked yourself how much Social Security amount a person can get if he/she retires at age of 62? Let’s find out the answer to this question in full details and perspective of human beings.
Maximum Social Security Payment at the Age of 62
The Social Security Administration (SSA) states that the maximum monthly benefit a person retiring at age 62 can receive is $2,831 in 2025. This maximum amount is only available to individuals with very special situations, however.
These special conditions include:
- Have worked in SSA-covered employment for 35 years,
- Have earned the maximum contribution amount set by SSA each year,
- And have applied at age 62.
The maximum contribution limit for 2025 is set at $176,100, up from $168,600 in 2024. Statistics like these show that most people will find it impossible to get that much.
Average Social Security Payment: A Realistic Figure
While the maximum amount sounds attractive, in reality most retirees receive an average amount. According to the SSA, the average Social Security payment for a 62-year-old by December 2024 is $1,341.61 per month**.
If we look at it by gender:
- Men earn an average of $1,485.76
- Women earn an average of $1,207.03
This difference shows that women earn less than men, which is a reflection of the US gender pay gap and factors related to tenure.
Benefits of taking Social Security early
Taking Social Security at age 62 can be very beneficial for some people. Its major benefits include:
- Early start of income – The sooner you apply, the sooner monthly payments begin.
- Freedom and leisure – After getting relief from work, a person can spend time on his interests, travel, and spend time with family.
- Decision due to health concerns – Sometimes people have to retire early due to health reasons.
Disadvantages of applying early
Although early retirement may be attractive to some people, it also has some serious disadvantages:
- Reduction of up to 30%: According to the SSA, applying before full retirement age (FRA) results in a reduction of up to 30%. That means you get only 70% of your full benefit.
- Effect of inflation: Even though the SSA increases benefits every year through the Cost-of-Living Adjustment (COLA), it still does not fully balance the actual purchasing power of the elderly.
- Financial problems in longevity: If you live a long time, a lower payment amount starting early can cause financial stress in later years.
COLA (Cost-of-Living Adjustment) and its effect
Each year, in October, the SSA announces the COLA, which will be effective from the first payment of the next year. For instance, if the COLA is announced on October 15, 2025, the first updated payment will be made on January 2, 2026.
COLA’s intent is to safeguard the purchasing power of benefits against inflation. However, the juxtaposition of Medicaid and Social Security benefit increases is seen as insufficient given the needs of the elderly because it is based on the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers), especially since many experts believe that the elderly’s spending patterns are sufficiently different from the average worker, that a different index should be used.
The decision: Apply early or wait?
The decision to take Social Security at 62 really depends on the personal situation. If you are financially secure and expectations of longevity, applying at your full retirement age or beyond may be more advantageous to you. However, if you have health reasons or a need for immediate income, you might consider applying at 62.
Conclusion: Plan Wisely
Taking Social Security at age 62 is a big decision that can deeply affect your future financial situation. So:
- Plan well ahead of time,
- Determine your retirement goals,
- and understand all your options in consultation with the SSA.
FAQs
Q2. Up to $2,831 per month, if maximum conditions are met.
About $1,341.61 per month as of December 2024.
Q3. Do men and women receive the same Social Security amount?
No, men average $1,485.76 while women average $1,207.03.
Q4. What is the downside of claiming Social Security at 62?
You may receive up to 30% less than your full benefit.
Q5. What is COLA in Social Security?
COLA stands for Cost-of-Living Adjustment, which increases benefits to keep up with inflation.
