Only a lucky few are allowed to start receiving their Social Security benefits right at 62.
You’ve paid into Social Security your entire working life, and now it’s time to start getting money back in return. You decided to apply as soon as possible to get as many checks as possible. But your 62nd birthday comes and goes, and no money appears in your bank account. What went wrong?
Probably nothing. There’s a little-known Social Security rule that prevents most workers from receiving benefits the moment they turn 62. Here’s what you need to know so you can plan appropriately.
Social Security eligibility is a little more complicated than you think
You’ve probably heard that you become eligible for Social Security when you turn 62, but that’s a little misleading. In reality, you become eligible for Social Security in the first month that you’re 62 for the entire month. And for most of us, that’s not our birth month.
Say, for example, you’ll turn 62 on Dec. 15 this year. The Social Security Administration doesn’t count December as your first month of eligibility because you’re only 62 for half of the month.
You aren’t technically eligible for benefits until January 2024, and you won’t see your first check until February 2024. That’s because the Social Security Administration pays benefits in the month after the month for which they’re due.
The only people who qualify for Social Security retirement benefits right at 62 are people born on the first of a month. For the rest of us, our earliest age of eligibility is 62 and 1 month. But there’s an upside to that.
The government shrinks your checks a little for every month you claim Social Security below your full retirement age (FRA) — age 66 to 67 for today’s workers. You lose 5/9 of 1% per month for up to 36 months for claiming early. And if you apply even earlier than that, you’ll lose another 5/12 of 1% per month.
When you claim at 62 and 1 month, you’re effectively adding another 5/12 of 1% per month to your checks that you wouldn’t have gotten had you been able to claim immediately at 62. That probably won’t amount to much — a few dollars per check, at most. But over several decades, it could add up to thousands of dollars extra.
You can still apply early
Just because you can’t receive Social Security as soon as you turn 62 doesn’t mean you can’t apply then. Actually, you can apply up to four months before you hope to receive benefits. For example, you can apply right now if you hope to begin claiming benefits in March 2024.
It’s advantageous to apply for benefits a little before you hope to receive checks, rather than waiting until the last minute. This will give you time to ensure you have all the documents necessary for the government to process your claim. And if you have any questions about your Social Security eligibility, reach out to the Social Security Administration by phone or by visiting your local Social Security office.
