Claiming Social Security at FRA+3 vs age 70 - $500 monthly difference with 80yo break-even point

Thanks for this thoughtful response. The survivor benefit point is irrelevant in my case (not married). Tax implications are definitely a factor I hadn't fully considered - you're right that while I'm still working, up to 85% of the SS benefits could be taxable. I probably would invest most of the money if I took it now. Family longevity is mixed - some relatives lived to 90s, others didn't make it past 75. That uncertainty is what makes this tricky! I like your compromise of claiming at 68 - I hadn't really considered a middle-ground approach.

This is misinformation. Social Security is fully funded through 2034, and even after that it would still pay around 80% of benefits if no changes are made. Congress has always fixed funding issues before they become critical. Taking benefits at 62 results in a 30% permanent reduction compared to FRA. The OP is already past FRA, so they're looking at gaining 8% per year in delayed retirement credits until age 70. This is a guaranteed return you can't get anywhere else. OP - if you don't need the money and expect to live past 80, mathematically it makes sense to wait. If you'd enjoy having the extra money now for quality of life or have health concerns, taking it now could be reasonable.

The voluntary suspension option is interesting - I hadn't considered that flexibility. So theoretically I could start benefits now, collect for a year or so, then suspend if my business does particularly well, and then restart later with some delayed credits? That gives me more options than I realized. Thanks for sharing your experience!

It took me about 6 weeks to get my first payment after applying online. The retroactive payment (since I was past FRA) came about 2 weeks after that. They back-pay you for any months you were eligible but hadn't received benefits yet, so you don't actually lose money by the processing time.

I had the same problem last month when trying to get info about my application status. After getting disconnected three times, I found this service called Claimyr (claimyr.com) that got me through to an actual SSA agent in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU It was worth it to finally get my questions answered about how my self-employment income would affect my benefits. The agent walked me through the earnings test since I'm still working (though it sounds like you're past FRA so the earnings test wouldn't apply to you).

The self-employment tax angle is one I hadn't thought about - you're right that I'm paying the full 15.3% on everything I earn. And true, the fact that I've already passed FRA means I can earn unlimited income without benefit reductions. The guaranteed 8% return is compelling, but so is having $120K in my pocket over the next 3.5 years. I like that Social Security benefits adjust with inflation - my investments might not keep pace if inflation stays high. I was briefly married (6 years) decades ago, but I don't think that qualifies me for any spousal benefits since it was less than 10 years. Are there other special filing strategies I should look into?

I'm sorry about your neighbor, but that's anecdotal evidence. Statistically, about 40% of men and 50% of women who reach age 65 will live beyond age 85. Each person needs to make this decision based on their own health situation, family history, and financial needs rather than individual stories. For some people, the peace of mind of a higher guaranteed lifetime income is worth waiting for. For others, collecting earlier makes more sense. It's a personal decision with no universally right answer.

That's a great perspective! I've been using the SSA calculators, but hadn't really thought about how the decision impacts my approach to work. I've been considering scaling back over the next 5 years (I'm a marketing consultant), but haven't made concrete plans. Maybe having those Social Security payments would give me the flexibility to turn down less interesting projects and focus on work I actually enjoy. That's a quality-of-life factor I hadn't considered in my financial calculations. Thanks for sharing your experience!

The month doesn't matter in terms of the calculation. Your benefit amount increases by 2/3 of 1% for each month you delay after FRA (which works out to 8% per year). So whether you apply in your birth month or any other month, you'll get credit for the exact number of months you've delayed. However, benefits are paid in the month following the month they're due for. So if you want your first payment to arrive in a specific month, you should apply one month earlier. Also remember that SSA pays benefits based on your age on the LAST day of the month, except for those born on the 1st of the month.