Regret taking Social Security at 62? What to do if the decision haunts you (and why younger Boomers must take notice)

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If you claimed Social Security as soon as you became eligible, you’re in a pretty big club. Roughly 30% of beneficiaries of the program, as of 2024, made their first claim at age 62, according to the Bipartisan Policy Center (1).

With the ongoing affordability crisis, it’s easy to see why nearly one in three seniors sign up for monthly payments as soon as they become officially eligible. But for many of these early retirees, the decision to sign up for benefits at 62 can haunt them later.

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If you’re one of these regretful beneficiaries, here’s what you need to know.

Early claim regrets

The biggest drawback with an early claim is the benefit reduction. For most people born after 1960, the full retirement age is 67 and claiming benefits earlier comes with a reduction in monthly payouts worth as much as 30%, according to the Social Security Administration (2).

That means if you qualified for $2,000 a month at age 67, claiming at 62 can slash that payout down to just $1,400. Not only is that a big gap, it’s also permanent. If you live into your 80s or 90s, the cumulative impact on lifetime earnings could be worth a lot.

For many people who claim early, this is the root of their regret.

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What you can do

You can’t turn back time, but the good news is that there are several ways to mitigate your mistake even after you’ve filed your claim.

The most effective is the 12-month window for cancellation that the SSA offers (3) you. Essentially, you can cancel or withdraw your application for benefits within 12 months of filing, but you must pay back any benefits you have received over that period. This is a quick, but painful, fix.

If you’re beyond the 12-month window, there’s still an option available. There’s a little-known “do-over” option available for beneficiaries, according to Fidelity (4). Essentially, the SSA allows you to suspend benefits at full retirement age (FRA) and enjoy up to a 24% boost in monthly payments by restarting at age 70.

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In other words you can stop collecting payments at age 67 and restart at age 70 with much of your pay cut offset.

To be fair, suspending your benefits for one to three years is likely to be uncomfortable. You will have to find ways to bridge the gap in your finances, preferably with your savings or 401(k) funds. You could also borrow against your home equity to bridge the gap and repay the loan once you restart benefits.

AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.

It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan upfront. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use, and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.

This HELOC could help you cover the gap from suspending Social Security for a few years. Once you restart benefits, you can enjoy a larger monthly payout that lets you quickly repay the HELOC. Just make sure you understand any repayment terms before committing.

Lessons for pre-retirees

If you haven’t filed for Social Security yet, you can avoid these complicated maneuvers and regrets by simply planning ahead.

Working with an experienced financial planner or tax advisor should help you figure out the best age for filing your claim. An experienced professional can help you strike the right balance between monthly payouts and your personal financial needs.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.

From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.