Workers May Claim Social Security at 62 Despite Up to 30% Benefit Cuts

Q: Experts warn against filing at 62, but what hidden spousal strategy makes early claiming a highly profitable move for married couples?

The key strategy is for the lower-earning spouse to claim Social Security early, often at 62, so the higher-earning spouse can delay filing until as late as 70. That can be highly profitable because the higher earner’s benefit grows by about 8% a year after full retirement age, producing a much larger monthly check. That larger benefit also matters beyond retirement income: if the higher earner dies first, the surviving spouse generally keeps the larger benefit, so delaying can raise survivor income for life. The lower-earning spouse’s early claim can help bring money into the household while the higher earner waits. In some cases, that spouse may later receive a spousal benefit based on up to 50% of the higher earner’s full-retirement-age benefit, rather than being limited to the worker’s reduced early-claim amount. If the lower earner’s own benefit is small, this can substantially lift household income once the higher earner files. Experts stress that this is a household optimization strategy, not an individual one. Early claiming still permanently reduces the lower earner’s own retirement benefit, and spousal benefits claimed before full retirement age are also reduced. But when the tradeoff allows the higher earner to maximize both the retirement check and the eventual survivor benefit, claiming at 62 can deliver more total lifetime income for a married couple than both spouses simply waiting or both filing early.

3 articles · Updated · The Globe and Mail · Aug 31

Three cases can make claiming Social Security at 62 the better choice despite lower monthly checks: poor health, shrinking savings, or helping a higher-earning spouse delay.
A worker with a full retirement age of 67 can see benefits cut by as much as 30% by filing at 62, while waiting can raise payments through avoided early-filing penalties and delayed retirement credits.
Poor health matters most for single retirees, because delaying only pays off if they live long enough to recoup forgone benefits; higher earners with spouses can still boost survivor benefits by waiting.
Tight finances can also force an early claim, especially for people pushed out of work by illness, caregiving, or weak job prospects, making reduced checks preferable to rapidly draining retirement accounts.
For couples, one spouse claiming at 62 can let the higher earner wait longer, increasing the household's larger future benefit and potentially allowing the lower earner to switch to spousal benefits later.