Will Social Security deduct early penalties from the benefit amount shown for age 62 retirement?

The estimated amount shown on your Social Security statement for age 62 ALREADY includes the early retirement reduction. What you see is what you'll get (minus Medicare premiums and tax withholding if you elect those). The reduction for claiming at 62 is built into their calculation - roughly 30% less than your full retirement age benefit.

congrats on retiring soon! my mom got her first check 3 months after she applied fyi

ARE YOU SURE YOU WANT TO FILE AT 62??? I did that 2 years ago and DEEPLY REGRET IT!!! My benefit is permanently reduced by HUNDREDS every month for the rest of my life! If you can wait until Full Retirement Age you get THOUSANDS more per year forever!!!

Just to add some clarification - the statement shows your benefit already reduced for early retirement. However, there are other factors that can affect your actual payment: 1. If you're still working before Full Retirement Age, you may be subject to the Earnings Test which can temporarily reduce benefits 2. Medicare Part B premiums will be deducted (currently around $175/month) if you enroll in Medicare 3. Any tax withholding you elect 4. Any adjustments from delayed or missing earnings records Most important: make sure all your earnings history is correct in your Social Security record before applying. Mistakes there can permanently lower your benefit.

When I retired at 62, the amount I got was exactly what my statement said I would get. No surprises there. But they do take out Medicare once you turn 65 so be ready for that.

I tried calling SSA to ask almost the same question last month and spent THREE DAYS trying to get through. Finally found this service called Claimyr that got me connected to an agent in 20 minutes. Saved me hours of frustration! You can see how it works at https://youtu.be/Z-BRbJw3puU - the website is claimyr.com. Worth it for getting quick answers about retirement estimates.

My sister-in-law filed at 62 last year and got confused about this same thing. She thought they'd take the 30% reduction AFTER the amount shown on the statement! Had herself all worked up about it lol. But yes, what shows on your statement is already calculated with the reduction. The only thing to watch for is if you work while collecting early SS, they can reduce your benefit temporarily if you earn over the annual limit (around $21,000 in 2025 I think?). They'll give that money back later after you reach full retirement age though.

One more consideration: have you checked if you might qualify for spousal benefits instead of your own? Sometimes that can be higher depending on your situation. Also, filing at 62 permanently reduces any potential survivor benefits your spouse might receive if you pass away first. Worth discussing with a financial advisor who specializes in Social Security strategies before you pull the trigger.

Just wanted to add my experience - I filed at 62 last year and the amount on my statement was exactly what I received (before Medicare deductions). One tip: apply about 3 months before you want your first payment to start. The process was actually smoother than I expected, but it does take time to process. Also double-check your earnings record online before applying - I found an error from 2019 that would have cost me about $15/month for life if I hadn't caught it. The SSA corrected it pretty quickly once I provided my W-2. Good luck with your decision!