There's a reason a good number of seniors opt to sign up for Social Security at age 62. Age 62 is the earliest age to collect Social Security. But it's not necessarily the best age to file for benefits.
You're entitled to your complete monthly Social Security benefit based on your personal wage history once you reach full retirement age, or FRA. If you were born in 1960 or later, FRA is 67.
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Meanwhile, for each month you claim Social Security ahead of FRA, your monthly benefit gets reduced by a certain amount. Filing at age 62 will mean facing a 30% reduction in your Social Security income if you have an FRA of 67. And that, frankly, is a pretty big hit.
Now you may have rushed to sign up for Social Security at 62 to get your money as soon as you were able to, and perhaps do something like escape a really stressful job. That's understandable. But if you regret your decision after the fact, that's also understandable. The good news is that under the right circumstances, you may not be stuck with your reduced benefit for life after all.
You can look into getting a do-over
One lesser-known Social Security rule is that all filers are allowed one do-over for claiming benefits. But to take advantage of that do-over, you need to meet a couple of criteria.
First, you need to undo your filing within a year of submitting an application for benefits. Secondly, you must repay all of the money in benefits you received.
The latter may be difficult if that money is already spent. If it isn't, though, then you may want to consider undoing your Social Security filing and claiming benefits again at a later age.
Many seniors sign up for Social Security at 62 before they truly realize how expensive retirement is. A higher monthly benefit could spare you a world of financial struggles, especially if you're someone who doesn't happen to have a lot of retirement savings.
When a do-over isn't an option
It may be that you signed up for Social Security at age 62, only it's been well more than a year since that point. In that case, you can't simply ask for a do-over. But what you can do is find ways to compensate for the lower monthly benefit you've locked in.
One option worth looking at is working on a part-time basis. And you can do so with a traditional job or by joining the gig economy. You can also look to rent out a portion of your home if it's conducive to that sort of arrangement.
Social Security is loaded with rules, and you may not realize that there is a possibility of undoing your filing after putting in an early claim. But you'll need to act quickly to take advantage of that option. If you signed up for benefits at 62 and have come to regret that choice, then don't hesitate to get the ball rolling so you're not resigned to a reduced monthly benefit for life.
