When life takes a sudden turn—whether from illness, injury, or unexpected job loss—many seniors find themselves scrambling to make ends meet. In that moment of uncertainty, it’s tempting to start Social Security benefits as soon as possible. But making the wrong move here can cost you thousands of dollars for the rest of your life.
This issue is deeply personal. We’ve seen it happen to friends and family who were forced out of the workforce before they were ready, unsure whether to retire early, apply for disability, or pursue something else entirely. Without the right information, it’s easy to make a fast decision that has long-term consequences.
Early Retirement Can Shrink Your Check for Life
The most common mistake seniors make is assuming they have to take retirement benefits immediately after leaving work. What many people don’t realize is that claiming Social Security before reaching full retirement age permanently reduces your monthly payment.
For example, if you’re set to receive $1,472 a month at full retirement age, claiming early could slash your check by 30%—dropping it by over $400 a month. On the flip side, if you delay retirement until age 70, your check could grow by nearly $400. That’s a monthly difference of around $800 depending on when you file.
Over a single year, that difference adds up to nearly $5,000. Over four years, that’s about $20,000. And that reduction doesn’t go away. Many people mistakenly believe their benefits will increase once they hit full retirement age, but that’s not how it works. Once your early retirement amount is locked in, it stays that way.
There May Be a Better Option: Disability
If you’re no longer able to work due to health issues, Social Security Disability Insurance (SSDI) might allow you to receive your full retirement benefit amount—even before you reach full retirement age. When approved for SSDI, you’ll receive benefits as if you’d waited until full retirement age, avoiding the penalty of early retirement.
Then, once you reach retirement age, your SSDI automatically converts into regular Social Security retirement benefits without any change in the amount.
This option can be a lifeline—but it’s not always easy to qualify. The process of applying for SSDI can be long and complex, especially if you don’t have help. Because of that, many people default to early retirement out of necessity or fear that they won’t be approved. But if you’re able to apply and qualify, disability benefits can preserve your financial future.
While You Wait for a Decision
The waiting period for SSDI decisions can be tough, especially if you have no income in the meantime. If you meet certain income and asset limits, you may be able to receive Supplemental Security Income (SSI) while your SSDI claim is pending.
There are also other benefits that might be available, like spousal or survivor benefits. If your situation is urgent, you may also qualify for hardship grants or emergency financial aid to help bridge the gap while you’re waiting.
We’ve outlined some of the best options for emergency financial assistance on our site, and many of them are designed to help people exactly in this kind of situation.
Don’t Rush—Review Everything First
Before you make any final decision about Social Security, take a few minutes to log into your My Social Security account online. Double-check your earnings history to make sure there are no errors and use the benefit calculators to compare your estimated payments based on different start dates.
This will give you a clearer picture of what each choice means for your future. If you’re still unsure, talking to a disability advocate or someone who understands the system can help you weigh your options. These decisions have lifelong consequences, and you deserve to make them with all the facts.
Relief Recap
Claiming Social Security early may seem like the easiest path during a tough time, but it often leads to significantly reduced income for the rest of your life. Before you commit to early retirement, explore whether you qualify for disability benefits or other forms of support. These programs can help you avoid the long-term penalty and keep more money in your pocket. Always take time to compare your options, and don’t be afraid to ask for help navigating the process.