Should You Wait to Claim Social Security? Two Scenarios Where Delaying Makes More Sense

If you’re turning 62 in 2026, Social Security becomes an option. But option doesn’t always mean optimal. The decision to claim benefits this year deserves careful thought—especially if certain life circumstances apply to you.

When You’re Still Gainfully Employed

Many people think “I’m eligible, so I should sign up now.” Not necessarily. If you’re gainfully employed and plan to keep working through 2026 and beyond, claiming Social Security immediately might cost you thousands over your lifetime.

Here’s why: every year you delay claiming benefits before age 70, your monthly payment increases. If you’re still earning a steady income and don’t urgently need Social Security to cover living expenses, postponing your claim locks in significantly larger monthly checks once you do retire.

There’s another consideration—the earnings test. If you haven’t reached full retirement age yet and you file for Social Security while gainfully employed, earning above a certain threshold can trigger benefit reductions. Why accept that penalty if your job continues to provide sufficient income?

The math is straightforward: wait longer, get more per month for the rest of your life.

When Your Retirement Savings Fall Short

The second reason to hesitate involves your financial foundation. Social Security typically replaces about 40% of preretirement earnings for someone with average income. Filing early reduces that replacement rate further.

If you don’t have substantial savings—a solid IRA or 401(k) balance—claiming reduced benefits could create real strain. You’d be locking yourself into permanently lower payments while relying on insufficient nest egg reserves to fill the gaps.

Consider this scenario: you’re 62, you have modest retirement savings, and you claim Social Security early. You’ll receive reduced checks for potentially 25-30+ years of retirement. That compounds into enormous lost income compared to waiting until full retirement age or even age 70.

If your retirement account balances are lean and you’re running out of time to catch up, the math often favors delaying Social Security to maximize that income stream when you truly need it.

The Decision Framework

Before claiming in 2026, ask yourself two questions:

Do I need this money immediately to cover my basic expenses? If you’re still gainfully employed and your job covers your costs, the answer is probably no.

Can I afford permanently reduced benefits? If your savings are modest, permanently accepting 25-30% less per month creates decades of financial pressure.

Planning Social Security strategically can mean the difference between a comfortable retirement and constant financial strain. The right timing depends on your individual situation—but rushing to claim at 62 simply because you can is rarely the optimal choice.