Social security reform may first target high-income earners
Social Security costs reach $1.5 trillion annually, and demographic changes threaten the program’s survival.
News told by money
Most Americans become eligible for Social Security at age 62. Unsurprisingly, that’s the most popular age to claim retirement benefits. Hi: It’s money.
But is 62 the best age to claim Social Security?
You can find hundreds of articles on this question, but the answer is not clear. The sooner you receive Social Security benefits, the larger your check will be. The longer you wait until age 70, the bigger your check gets.
But if you do the math, you’ll find compelling evidence that you should wait until age 70 to collect Social Security.
The reason is simple: human longevity. The average American retiree will live long enough to receive the most money in their lifetime if they wait until age 70 and claim the maximum monthly benefit. USA TODAY published an article in 2025 explaining that calculation.
One academic paper found that the typical retiree who files a claim before age 70 loses $182,370 in potential Social Security income.
Yet, more than 90 percent of Americans claim Social Security before age 70, and more than 1 in 5 receive their benefits at age 62.
Let’s take a closer look at some common reasons to collect Social Security at age 62. For a more personalized evaluation, visit a Social Security Optimizer, such as the one offered by T. Rowe Price.
need money
Social Security provides a monthly check until you die. If you’re 62 and no longer working and have no other income, it may make sense to take this benefit now.
“If their alternative is going to be debt, they might want to claim it early,” said Romina Boccia, director of budget and rights policy at the Cato Institute.
However, keep in mind that you could be left with $182,370.
Experts recommend considering other options. You can continue working for a few more years. If you have a lot of retirement savings, it may be better to spend it now and collect your Social Security benefits later.
“No one is going to say, ‘Get your savings to zero,'” said Monique Morrissey, senior economist at the Economic Policy Institute. “But if you have a few hundred thousand dollars, you can live on it until you’re 70.”
Lawrence Kotlikoff, an economist at Boston University and co-author of the academic paper cited above, is more categorical: To avoid receiving Social Security at age 62, you should “beg, borrow, and steal.”
you don’t expect to live long
When it comes to claiming Social Security, longevity is important.
The Motley Fool calculates that if you’re considering whether to claim benefits at age 62 or 70, your “break-even point” would be around age 80. If you live longer than that, it’s better to claim at age 70.
Many Americans are severely misinformed about human life expectancy. The average American lives to about 78 years old, so retirees often think they will die in their 70s.
However, life expectancy increases with age. At age 62, you can expect to live into your 80s.
“People are far more likely to underestimate their life expectancy than overestimate,” Morrissey said.
However, some Americans reach age 62 knowing that they will never reach 80. They may have a terminal illness or have a “genetic predisposition to certain diseases that can shorten their lifespan,” Boccia said. “Then math might look very different to them.”
Social Security is running out of money
Social Security solvency is not a minor concern. Surveys show that most U.S. workers are worried that they will lose the benefits they were promised when they retire.
Social Security could face a shortage as early as 2032. Without action from Congress, recipients could see their monthly checks cut by 28%.
Fear led many Americans to claim Social Security early. In the 2025 AARP survey, nearly a quarter of Americans ages 62 to 66 said they had decided to claim Social Security early within the past year or planned to do so.
“I think that’s the most common reason people who can afford to wait take Social Security early,” Morrissey said.
But is that a good reason?
Social Security watchers widely expect Congress to find a way to fix the program by raising more taxes, adjusting the “full” retirement age for benefits, or borrowing money.
Prime Minister Morrissey said cutting social security for retirees would be “political suicide” for those who approved the cuts. Experts say benefits cuts are likely to affect younger workers who are many years after retirement.
“I think it’s very unlikely that benefits will be cut for people who are or are nearing retirement,” said Robert Brokamp, senior retirement advisor at The Motley Fool.
I want to claim early and invest my money.
As mentioned above, compelling mathematics suggests that most Americans will get the most benefit from Social Security if they wait until age 70 to claim it.
But what happens if you receive a small check at age 62 and invest the money yourself?
Before we answer that question, let’s review how the Social Security bonus system works.
For Americans born after 1960, the full Social Security retirement age is 67 years old. If you make a claim at that time, you will receive the “full” benefit. The earlier you claim, the less money you’ll get. At age 62, the minimum benefit amount is reduced by 30%.
If you claim benefits after age 67, your check will continue to grow at 8% per year. According to Kotlikoff’s calculations, the total Social Security “bonus” from ages 62 to 70 would increase monthly payments by about 76%.
The question is whether you can “win” the bonus by receiving and investing your check early.
We asked the experts that question. Short answer: Maybe. But it may not be worth the risk.
According to one Motley Fool analysis, if you earn 5% a year in Social Security contributions, you may be better off taking your benefits at age 62, even if your monthly check is smaller. This potential benefit lasts until about age 90. Even if you live longer than that, you’re better off claiming a larger Social Security check at age 70.
Brokamp said investing a Social Security check may make sense for people who don’t need the money and want to pass it on to their children.
However, this strategy has its risks and pitfalls. Perhaps the biggest risk, economists say, is the risk of investing Social Security money in unpredictable financial markets.
“Nearly all retirement experts agree that the core of your retirement savings should be kept in the safest form possible,” Morrissey said. And few investments can match the security of Social Security.
