There’s a reason 62 has long been a popular age to claim Social Security. It’s the earliest age possible to sign up. And there’s something to be said for getting those benefits sooner.

In fact, some people claim Social Security at 62 because they don’t want to gamble on their life expectancies. Delaying Social Security — either to full retirement age or beyond — can be advantageous for people who end up living well into their 80s or beyond. But for people who pass away at a relatively young age, claiming Social Security at 62 often leads to a greater amount of lifetime income despite a reduction in monthly benefits.

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Still, that reduction is one retirees need to take seriously.

Many seniors approach their later years sorely lacking in savings. Federal Reserve data from 2022 found that among Americans aged 65 to 74, the median retirement savings balance was only $200,000. And while that’s preferable to having no savings, it’s not a huge sum of money over the course of what could be a decades-long retirement.

It’s this broad lack of retirement savings that makes claiming Social Security at 62, or at any point prior to full retirement age, dangerous. Many seniors, simply put, cannot afford to lock in a reduced monthly benefit for life.

But actually, filing for Social Security early doesn’t guarantee that income. There’s a way to sign up for Social Security at 62, or ahead of full retirement age, but avoid a lifetime reduction in benefits. But pulling that off requires seniors to understand one key rule that isn’t very well publicized.

Everybody gets a do-over

Many seniors are surprised to learn that all Social Security claimants are eligible for a single do-over in their lifetime. What this means is that you could file for benefits at 62 and then, upon seeing what reduction that results in, change your mind and undo your claim.

Now there is a catch. To exercise the do-over option, you need to withdraw your application for benefits within a year. And you also need to pay the Social Security Administration every dollars in benefits it paid you.

The latter requirement is what commonly trips seniors up and prevents them from getting a do-over. But a lack of knowledge may be fueling that impediment.

If more seniors knew about the do-over, they’d perhaps act on it sooner. But since it’s a little-known rule, what might inevitably happen is that someone claims Social Security early, regrets it, and doesn’t learn about the do-over until it’s too late.

Consider yourself informed

Your best bet with regard to Social Security is to get your filing age right from the start. But you may not realize how difficult it is to live on a reduced monthly benefit until you actually start doing it.

So if you end up in that boat, know that you’re not necessarily stuck. If you feel a do-over will make your retirement less financially stressful on a long-term basis, exercise that option and go back to work for a few more years as needed to make up for not getting Social Security.

Of course, this is easier said than done, as it’s not a given that you’ll be hired immediately in your 60s once you decide you’d like to work again. But thankfully, the gig economy is open to workers of all ages, and many do quite well there. So you may have options for exercising your do-over even if finding full-time work is a challenge.

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