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Retiring at 62 can cut Social Security lifetime benefits by up to 30%
The outlet notes the maximum benefit at 62 is $2,572 per month for someone whose full retirement age is 67, based on a cited example.
Retiring at age 62 and claiming Social Security early can reduce a person’s lifetime benefits by up to 30% compared with waiting until their full retirement age, according to analysis syndicated by Yahoo Finance. The article frames the tradeoff for retirees who also hold substantial savings, including a Roth IRA.
In a scenario discussed by Brandywine Asset Management founder Mike Dever, someone planning to receive $3,000 per month at 62 is said to have miscalculated, because the most a person can collect at 62 is $2,572 when full retirement age is 67. The piece warns that such an error would translate into about $5,000 less in annual income.
The article also emphasizes that a $2.5 million Roth IRA could still support “relatively generous” withdrawals, meaning Social Security is only one part of the retirement plan. It highlights inflation as a hidden retirement risk, particularly because retirees typically shift from growth-focused investing toward more conservative, income-oriented allocations.
The piece concludes by advising readers to double-check assumptions before leaving the workforce, and suggests working with a financial advisor to estimate Social Security benefits and retirement withdrawal needs.