When Should I Claim Social Security? Finding Your Break-Even Age
How claiming Social Security at 62, full retirement age, or 70 changes your benefit for life, and how to find your break-even age.
Claiming Social Security early permanently reduces your monthly benefit, and delaying past full retirement age permanently increases it. The right choice hinges on longevity, other income, and marital situation.
Full retirement age
Full retirement age (FRA) is 67 for anyone born in 1960 or later. FRA is the baseline against which early and delayed benefits are measured: claim at FRA and you receive 100 percent of your primary insurance amount for life.
Claiming early at 62
The earliest age to claim retirement benefits is 62. Claiming at 62 with an FRA of 67 is a permanent reduction of about 30 percent versus the FRA benefit. The reduction applies for the rest of your life and also reduces spousal and survivor benefits based on your record.
Delaying to 70
Delayed retirement credits add about 8 percent per year between FRA and age 70, roughly a 24 percent permanent increase for someone with an FRA of 67 who waits until 70. There is no benefit to delaying past 70.
Finding your break-even age
The break-even age is when total lifetime benefits from delaying overtake the total from claiming early. For most people comparing 62 vs 70, break-even lands in the late 70s to early 80s. Living past break-even makes delaying the better financial choice; dying before break-even makes claiming earlier the better one in hindsight.
Worked example
A worker with a 2,000 dollar FRA benefit collects about 1,400 dollars a month at 62 or about 2,480 dollars a month at 70. Cumulative benefits from claiming at 62 lead until roughly the early 80s, at which point the delayed stream pulls ahead and stays ahead for the rest of a long life.
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Sources
Last reviewed . Educational estimates only; local conditions and codes take precedence. Consult a qualified professional for site-specific decisions.