Karen Long believed she was ready for the next chapter. After working 35 years in corporate administration, she chose to retire at age 62 and pursue her lifelong dream: traveling through Europe, the Pacific Northwest, and wherever her spirit called.
But just months after her early retirement, the first Social Security check arrived—smaller than she had expected. Much smaller.
“I thought I’d done everything right,” she said. “I budgeted. I saved. But I didn’t understand how early filing really works.”
The Early Retirement Surprise
When Karen applied for her benefits at 62, she assumed she’d start receiving her “full” Social Security payout. She didn’t realize she was filing before reaching her Full Retirement Age (FRA)—which for her, was 67.
Because of that, her monthly benefits were reduced by nearly 30%. Worse, the reduction was permanent.
“I felt like I was being punished for leaving early,” she said. “No one explained that once you take early benefits, you can’t reverse it after 12 months.”
The Consequences of Filing at 62
According to the Social Security Administration, retiring at 62—though legal—comes with long-term consequences:
- A 25–30% reduction in monthly benefit
- No access to delayed retirement credits
- Limited work income allowed if you plan to earn while retired
Karen found herself stuck between regret and reality. “If I had waited until 67, I would’ve received hundreds more each month. If I’d waited until 70, I’d have increased my benefits by over 24%,” she said.
Her Dream Shifted—And So Did Her Budget
Karen still travels, but the plan has changed. Luxury hotels became Airbnb stays. Monthly excursions turned into quarterly getaways. She cut back expenses and postponed plans.
“I had to re-learn how to live on less. The freedom I imagined came with strings.”
What Experts Recommend Before You File
Financial planners now use Karen’s story as a case study for those considering early Social Security.
If you’re thinking of retiring early, make sure to:
- Know your FRA: For those born in 1960 or later, it’s 67.
- Understand Delayed Retirement Credits: Waiting until age 70 gives you the highest monthly payout possible.
- Check your estimated benefits using the official SSA calculator.
- Have a bridge plan: Consider using personal savings, part-time income, or retirement accounts to bridge the gap until FRA.
Karen’s Advice: “Wait If You Can”
Though she doesn’t regret retiring, Karen often reflects on what she didn’t know.
“I wish someone had sat me down and explained how long-term the impact was. Everyone tells you to live for today—but Social Security decisions live with you forever.”