Social Security at 62 vs 70What Federal Employees Need to Know Before Deciding
For most workers, the Social Security claiming age decision is straightforward. For federal employees under FERS, it's more complex — because you may have the FERS Supplement bridging your income until 62, and your pension COLA and VA benefits change the breakeven math significantly.
The Basics: How Claiming Age Affects Your Benefit
| Claiming Age | Benefit Adjustment | Example ($2,000 at FRA) |
|---|---|---|
| 62 | −25% to −30% | $1,400–$1,500/mo |
| 63 | −20% | $1,600/mo |
| 65 | −13% | $1,740/mo |
| 67 (FRA) | 0% | $2,000/mo |
| 68 | +8% | $2,160/mo |
| 70 | +24% to +32% | $2,640/mo |
Exact reduction depends on your birth year. FRA is 67 for those born 1960 or later.
The FERS Supplement: Why This Is Different for Federal Employees
If you retire before 62 under FERS, you may receive the FERS Special Retirement Supplement — a monthly payment designed to approximate what Social Security would pay. This bridge stops at 62, exactly when Social Security becomes available.
The Supplement also stops if you earn more than the SSA earnings limit (~$22,000/year) from employment — a common surprise for early retirees who return to part-time work.
The Breakeven Analysis
Waiting to claim Social Security increases your lifetime benefit — but only if you live long enough to break even. Here's the math:
Breakeven: Age 62 vs Age 70
- Benefit at 62: $1,500/month
- Benefit at 70: $2,640/month
- Extra income by waiting (per month): +$1,140
- Years of $1,500 received before 70: 8 years × $1,500 = $144,000
- Months to recoup at +$1,140/mo: 144,000 ÷ 1,140 = ~10.5 years
- Breakeven age: approximately 80–81
If you live past 81, waiting to 70 wins. If you don't, taking it at 62 produces more total income. For federal employees with strong FERS COLAs and VA disability income, the math often favors waiting.
The Earnings Test at 62: A Fers-Specific Problem
If you claim Social Security before your full retirement age (FRA) and continue working, SSA's earnings test can reduce your Social Security benefit. In 2025, SSA withholds $1 in benefits for every $2 you earn above approximately $22,320/year.
For FERS retirees who take early retirement but go back to part-time work (common among federal retirees), this creates a double pressure: the FERS Supplement is also reduced or eliminated if you earn over the same threshold. Claiming Social Security early while earning income can result in withholding on both streams simultaneously.
Spousal Benefit Strategy for Federal Couples
If you're married, the Social Security claiming decision is not just about your own breakeven — it's about maximizing the household's lifetime income, including what happens when one spouse dies.
When a spouse dies, the surviving spouse keeps the higher of the two Social Security benefits. This means the higher earner delaying to 70 provides the surviving spouse with a much larger survivor benefit for potentially decades.
Federal Couple Strategy (Common)
- Higher earner (FERS retiree): Wait to 70 for maximum benefit — especially if they have FERS pension + VA disability as income bridge
- Lower earner (spouse): Claim at 62–64 to bring in some Social Security during the bridge period
- Result: Higher survivor benefit when the FERS retiree dies, plus earlier cash flow from spouse's claim
When Taking Social Security at 62 Makes Sense
- ✓Your health is poor and you have significant concerns about longevity.
- ✓You have no other income bridge and need the cash flow immediately at 62.
- ✓You have a high-earning spouse who will claim at 70, making your lower benefit less critical.
- ✓Your TSP or other savings are being depleted faster than expected.
When Waiting to 70 Makes Sense
- ✓You're in good health and your family has longevity history (parents/grandparents lived past 85).
- ✓Your FERS pension and/or VA disability income covers your monthly expenses adequately.
- ✓You have a TSP or IRA bridge that can carry you from 62 to 70 without pressure to claim early.
- ✓You're married — maximizing the higher earner's benefit protects your surviving spouse.
Frequently Asked Questions
Q: Does the FERS Supplement count as Social Security for the earnings test?
A: No. The FERS Supplement has its own earnings test (separate from the SSA earnings test), but it is not counted as Social Security income. However, if you return to work and earn above the SSA limit after claiming early Social Security, that triggers SSA withholding independently of the Supplement.
Q: Can I claim Social Security while still receiving the FERS Supplement?
A: The FERS Supplement stops at age 62 — exactly when Social Security first becomes available. You cannot receive both simultaneously. At 62, the Supplement ends and your choice is whether to start Social Security immediately or wait.
Q: If I claim at 62 and change my mind, can I undo it?
A: SSA allows a one-time withdrawal of your Social Security application within 12 months of first receiving benefits. You must repay all benefits received. After 12 months, the only option is to suspend benefits once you reach FRA, which restores delayed retirement credits going forward but does not undo past reduced payments.
Q: Does my VA disability rating affect my Social Security benefit?
A: Not directly. VA disability compensation and Social Security retirement/disability are separate programs with different eligibility criteria. VA disability does not reduce your Social Security benefit, and vice versa. However, if you receive SSDI (Social Security Disability Insurance), different offset rules may apply before your regular retirement age.
Q: I'm divorced. Can I claim benefits based on my ex-spouse's record?
A: Yes, if the marriage lasted 10+ years and you are currently unmarried. You can claim up to 50% of your ex-spouse's FRA benefit. This does not reduce their benefit. If your ex-spouse is deceased, you may be eligible for the full survivor benefit (up to 100% of their benefit).
Related Articles
Model 62 vs 70 With Your Exact Numbers
The FedVetRetirement planner runs a year-by-year comparison of every Social Security claiming age from 62 to 70 — overlaid with your FERS pension, FERS Supplement, VA disability, and TSP drawdown.
- ✓ See your breakeven age and cumulative income at every claiming age
- ✓ Model the survivor impact for your spouse
- ✓ Compare strategies side-by-side with full net income projections
No credit card required. Takes about 5 minutes.
For educational purposes only. Social Security rules are complex and change. Consult the SSA or a qualified financial planner for personalized advice.