Question 1

When should I start claiming Social Security?

Accepted Answer

The best age to claim Social Security depends on your health, finances, and life expectancy. Claiming at 62 gives you smaller monthly checks sooner, while waiting until 70 gives you the largest monthly benefit. A break-even analysis shows the age at which the higher benefit from waiting surpasses the total received from claiming early.

Question 2

What is the Social Security break-even age?

Accepted Answer

The break-even age is when the total cumulative benefits from delaying Social Security catch up to the total from claiming earlier. For example, if you compare claiming at 62 vs. 67, the break-even age is when the larger checks from waiting until 67 make up for the five years of missed payments. This typically occurs in your late 70s to early 80s.

Question 3

How much more do I get by waiting until 70 to claim Social Security?

Accepted Answer

Delaying Social Security from 62 to 70 can increase your monthly benefit by up to 77%. For each year you delay past your full retirement age (67 for most people), your benefit grows by 8% per year through delayed retirement credits. However, you forgo years of payments while waiting, which is why a break-even analysis is essential.

Social Security Break-Even

Assumptions

Break-Even: 67 vs 62

Break-Even: 70 vs 62

Break-Even: 70 vs 67

Best Strategy

The Math Behind Delaying

What Is Your Social Security Worth Today?

NPV (Net Present Value) — Claim at 62

NPV — Claim at 67

NPV — Claim at 70

Cumulative Benefits by Claiming Age

Yearly Cumulative Comparison