Should I claim Social Security at 62 instead of FRA? The break-even math that changed my mind
Been crunching some numbers on my retirement options and wanted to share why I decided to take SS benefits at 62 instead of waiting for my Full Retirement Age (67 for me). I know the conventional wisdom says 'wait for the bigger monthly check,' but looking at the TOTAL money received over time tells a different story. I calculated that if I start at 62, by the time I reach 78 years old, I'll have collected roughly the same amount as if I had waited until 67. That's an 11-year break-even point! Considering my family health history isn't spectacular, waiting just didn't make financial sense. I'd rather have smaller checks starting now when I can still travel, play with grandkids, and enjoy life without health limitations. Plus, I've already put that money toward paying off my mortgage early, which gives me more financial freedom each month. Anyone else make this calculation? Did you choose early benefits or are you holding out for FRA? Just sharing because this isn't something my financial advisor highlighted - I had to do the math myself!
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Chloe Robinson
This is EXACTLY what I've been telling people for YEARS!!!!! The SSA doesn't want you to run these numbers because they KNOW most people will never reach break-even! My uncle waited till 70 to maximize his benefit and died at 74. The system is RIGGED to benefit the SSA, not us who paid in all those years! Take the money and ENJOY IT while you're young enough to have fun!
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Diego Flores
•While I understand the frustration, it's important to clarify that the Social Security Administration isn't profiting when people wait longer and pass away before reaching break-even. Benefits not paid to one person remain in the trust fund to pay others. The system is designed to be actuarially neutral across the population—some live longer than average, some shorter. Individual circumstances like health, family longevity, and financial needs should drive these decisions.
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Anastasia Kozlov
i took mine early too no regrets. my neighbor kept saying wait wait but who knows if ill make it to 80? plus inflation eating away savings every year. better to have money now then maybe later
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Sean Flanagan
Your calculation is missing some important factors that might change your break-even point: 1) Cost-of-living adjustments (COLAs) actually favor those who wait for larger benefits, as the percentage increases apply to larger base amounts 2) Taxation - if you're still working while collecting early benefits, up to 85% of your SS can be taxable, reducing the effective value of those early payments 3) Spousal benefits - if you're married and are the higher earner, waiting could provide your spouse with higher survivor benefits for life 4) Longevity insurance - delaying acts as insurance against outliving your savings While taking benefits early works for some, the math isn't as straightforward as simply adding up payments. Everyone's break-even point will differ based on these factors. I recommend using the detailed calculators at ssa.gov/benefits/retirement/estimator.html for a more personalized analysis.
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CosmicCrusader
•Great points about COLAs and taxation. I'm already fully retired so the work penalty doesn't apply to me. For spousal benefits, my wife actually earned more than me throughout her career so that's not a factor in our situation either. I did use the SSA calculator but it doesn't really highlight the cumulative benefit comparison over time. You have to export the data and calculate that separately, which is what led to my realization about the break-even point. I think many people just focus on the monthly amount without considering the time value of money.
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Zara Mirza
I started mine at 62 also! Best decision ever. Been taking wonderful cruises with my sister for 3 years now. Who knows what tomorrow brings? My mother waited til 65 and got alzheimers the next year and couldn't enjoy anything. So sad.
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NebulaNinja
Wait, can someone explain what FRA means? Is that different from when you turn 62? I'm getting close to retirement age and still confused about all these terms.
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Diego Flores
•FRA stands for Full Retirement Age - it's when you're eligible for 100% of your Social Security benefit. For people born 1960 or later, FRA is 67. If you claim at 62 (the earliest possible age), you'll receive a permanently reduced benefit - about 30% less than your full amount. If you wait past FRA, your benefit increases by 8% per year until age 70, which is considered "delayed retirement credits." You can find your exact FRA on the SSA website or your Social Security statement. Hope that helps clarify things!
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NebulaNinja
•Thank you! I think I get it now. So I could take less money earlier or more money later. I need to figure out which is better for me.
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Luca Russo
I've been trying to call SSA for weeks to discuss my options between early retirement and FRA. Can't get through to anyone. Automated system just disconnects me after 2 hours on hold. How did you even get information to make your decision? I'm turning 62 next month and still don't know what to do!?
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Sean Flanagan
•Have you tried using Claimyr? It's a service that helps you get through to a Social Security agent without the endless hold times. I was skeptical at first, but it worked great when I needed to discuss my retirement options. They have a video demo at https://youtu.be/Z-BRbJw3puU that shows how it works. The website is claimyr.com. Saved me hours of frustration and I was able to get detailed answers about my specific situation.
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Anastasia Kozlov
my uncle says ssa is going broke anyway better take money now while its still there lol
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Chloe Robinson
•Your uncle is RIGHT! The trust fund is projected to be depleted by 2034 and then benefits will be CUT by 20%+ for EVERYONE! They don't want us to know this but it's right there in their annual report!!
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Diego Flores
•This is a common misconception. Even if the trust fund is depleted, Social Security will still receive ongoing payroll tax revenue that would cover approximately 78-80% of promised benefits. Congress has also historically acted to shore up the program before major shortfalls, as they did in 1983. Taking benefits early solely because of fears the program will disappear isn't supported by the historical evidence or current projections.
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CosmicCrusader
Just wanted to follow up - thanks everyone for the engaging discussion! I appreciate all perspectives. For those wondering, I made my choice after reading several SSA publications and creating my own spreadsheet to compare scenarios. While I'm comfortable with my decision, I think the main point is that there's no one-size-fits-all answer. Health status, family situation, other income sources, and even personal values all matter. What worked for me might not work for everyone!
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