Social Security break-even age between $900 early vs $1400 at FRA - is it worth waiting?

The break-even calculation is pretty straightforward. If you take $900 now versus waiting for $1400 at FRA, you need to determine when the accumulated benefits would equal each other. For each year you wait, you're giving up 12 months × $900 = $10,800 per year. Once you start taking the higher $1400 benefit, you'll receive an extra $500 per month compared to the early benefit. So it would take you ($10,800 ÷ $500) = 21.6 months of higher payments to make up for each year you delayed. Generally, most break-even points fall between ages 78-82 depending on your specific circumstances.

Thank you for breaking that down! So if I'm understanding right, for every year I wait, it takes almost 2 years of the higher benefit to make up for it? That puts things in perspective. Given my family history, waiting might not make financial sense for me.

my mom took hers early at like 63 or something and always regretted it. she says u should ALWAYS wait for the bigger amount. she got way less money and lived til 92!!! just my 2 cents

But on the flip side, my dad waited until 67 to claim his full amount and passed away at 71. Barely got to enjoy anything. Sometimes the bird in hand is worth two in the bush...

There's more to consider than just the break-even calculation. Think about your current financial needs. Do you need the income now? Are you still working? Taking SS while working before FRA can trigger the earnings test, reducing your benefits if you earn above certain thresholds ($22,320 in 2025). Also consider spousal benefits if married - your decision affects what your spouse might receive as a survivor. And don't forget that COLA adjustments apply to a larger base amount if you wait, potentially making the difference even more significant over time.

I hadn't thought about the COLA angle - that's a really good point. I'm still working part-time but making less than that earnings limit. No spouse to consider in my situation. My pension and savings should cover needs, but the extra $900 would make things more comfortable now.

BREAK EVEN CALCULATIONS are NOT ACCURATE because they don't account for INFLATION and OPPORTUNITY COST!!! If you take early benefits and INVEST the money, you might NEVER reach the break even point. The SSA doesn't want you to know this because they SAVE MONEY when people delay!!!

While inflation is built into SS via COLAs, you make a fair point about opportunity cost. However, the guaranteed 8% per year increase (approximately) for delaying past FRA up to age 70 is hard to beat with safe investments. Aggressive investing of early benefits could potentially outperform delayed filing, but comes with significant risk. It's not a conspiracy - SSA actuaries set the early/delayed factors to be roughly neutral in terms of lifetime benefits for the average lifespan.

I was in a similar situation last year. Spent hours on the phone trying to get someone at SSA to help me understand my options. Always got disconnected or waited forever. I finally used this service called Claimyr (claimyr.com) that got me through to an agent in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - honestly worth it to actually speak with someone who could run the numbers specific to my situation. The agent helped me calculate my exact break-even point and explained some factors I hadn't considered.

I've been trying to get through to SSA for days with no luck. Thanks for the tip - I'll check out that service. It would be helpful to talk to someone who can look at my specific record and give personalized advice.

Anyone know if the break-even calculation changes if you're eligible for both your own benefit and a spousal benefit? My husband is still working but I'm trying to decide when I should file. So confused about all these rules!

Yes, it absolutely changes the calculation! If you're eligible for both your own benefit and a spousal benefit, you need to consider how your filing age affects both. Filing early reduces both your own benefit AND the spousal benefit you might be eligible for. It's generally advisable for the higher-earning spouse to delay benefits, especially if they're significantly older or in better health. This maximizes the survivor benefit for the other spouse.

I took mine at 62 and am glad I did. Spent the money traveling while I was still healthy enough to enjoy it. Sure I get less per month now but I'm 79 and living with health issues that would have made those trips impossible. No regrets! Sometimes quality of life now matters more than potentially more money later.

I appreciate this perspective. There's definitely something to be said for enjoying the money while I'm still active and healthy. That's part of why I'm leaning toward taking it now.

Since we're discussing break-even analysis, here's a simple way to calculate it yourself: First, find out your total benefits if you claim early until a specific age. Then calculate total benefits if you wait until FRA until that same age. The age where the second total exceeds the first is your break-even age. For your specific numbers ($900 early vs $1400 at FRA), assuming your FRA is 67 and you're 62 now, your break-even age would be around 78-79. Beyond that age, waiting becomes more financially advantageous.

That doesn't count taxes though!! Early SS might keep you in a lower tax bracket if you have other income sources. And don't forget that up to 85% of SS can be taxable depending on your combined income. The government WANTS you to delay so they can keep your money longer!!

I'm confused about something... does the break-even point change if I keep working while collecting? I heard something about SS taking back some of my benefits if I earn too much?

Yes, the earnings test applies if you claim before your FRA and continue working. For 2025, you'll lose $1 in benefits for every $2 you earn above $22,320 if you're under FRA for the full year. The year you reach FRA, the limit is higher ($59,520 for 2025) and the reduction is $1 for every $3 earned above that limit. Once you reach FRA, there's no earnings test. Your benefits will be recalculated at FRA to credit back the months when benefits were withheld, so it's not a complete loss, but it does affect the break-even calculation.

Thank you all for the helpful perspectives! I've got a much clearer picture now of what goes into this decision beyond just the math. I think I'm going to try to speak with someone at SSA using that Claimyr service, but I'm leaning toward taking the $900 now. My break-even point would be around 78-79 based on the calculations shared here, and considering my family health history plus wanting to enjoy the benefits while I'm still active, it makes sense for my situation. I appreciate everyone sharing their personal experiences too!

Sounds like you're making a well-informed decision based on your specific circumstances, which is exactly the right approach. There's no universal