Social Security break-even age calculation confusion - getting 80 vs 70.5 years?

Your math is on the right track, but there are a few factors the calculators include that might explain the difference. First, COLA (Cost of Living Adjustments) do affect the calculation - both your early benefits AND your delayed benefits will increase with COLA over time. Second, most calculators include the time value of money (meaning early dollars are worth more than future dollars). Finally, many calculators factor in tax implications.If you're healthy and have family longevity, waiting typically provides more lifetime income if you live past the break-even point. Remember that break-even isn't the only consideration - waiting provides higher monthly income for life, which can be valuable insurance against outliving your savings.

Thanks for explaining this! I'm still confused about why the time difference is so large though. Even with COLA, wouldn't both amounts increase proportionally? My mom lived to 93 and my dad is still going at 88, so longevity runs in the family. I'm just worried about needing the money during the next few years.

i did the math when i turned 62 last yr. took SS early cuz who knows if ill make it to 80 lol. rather have $$ now than be the richest guy in the cemetary. just my 2 cents

This is actually a common but potentially costly misconception. While taking benefits early seems appealing

WAIT!!!! Those break even calculators arent always accurate!! They're DESIGNED to make you think taking early benefits is smart because that's what the financial planners WANT you to do so they can manage more of your money!!! Check who's publishing those calculators!!!I almost made this mistake but thankfully my neighbor who used to work at SSA explained it to me. The TRUE break-even is much earlier than 80 for most people. Don't let them trick you into leaving money on the table!!!

While some calculators may have biases, most reputable ones use standard actuarial formulas. Break-even calculations are math-based, not opinions. The SSA's own calculators show break-even points typically between 76-82 for most people comparing age 62 vs. FRA benefits.That said, you're right that financial advisors sometimes have conflicts of interest. The best approach is to consider personal factors: health, family history, financial needs, marital status, and spousal benefits. There's no universal right answer - just what's optimal for your specific situation.

yea i got confused with this too. turns out for my situation i needed to factor in that i was still doing part time consulting so the earnings test made taking SS early a bad move for me. did u check if you'll have any income that might reduce your benefits?

Good point! I don't plan to work for at least the next two years while caring for my mom. After that, I might do some part-time consulting, but probably not enough to trigger the earnings limit. I completely forgot about that aspect.

Have you tried calling SSA directly to ask about their break-even calculation methodology? I've been trying for WEEKS to get someone on the phone to explain my own benefit calculation and it's impossible. Always busy signals or 2+ hour hold times that eventually disconnect.I finally 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. The agent walked me through my whole calculation and explained the break-even point. Worth it to get the right information directly from SSA.

I hadn't thought about calling them directly, but that's a good idea since their website doesn't explain the calculation methods. I'll check out that service - getting disconnected after waiting for hours would drive me crazy. Did the SSA agent give you a different break-even age than what you calculated yourself?

Professional financial planner here. Let me explain why the calculator shows age 80 while your math shows 70.5:1. COLA adjustments: When you take benefits at 62, you receive COLA increases for 5 years before the person who waits until 67 receives their first check. This means your early benefits grow over time.2. Time value of money: Most calculators apply a discount rate (typically 5-7%) to account for inflation and investment opportunity cost.3. Taxation: Depending on your income, up to 85% of SS benefits may be taxable, which affects net benefit comparisons.Your personal break-even calculation should consider:- Family longevity history (which you mentioned is good)- Other income sources - Immediate cash flow needs- Spousal benefits (if applicable)The SSA's actuarial adjustments are designed to make the total lifetime benefits roughly equal for the average life expectancy.

Thank you for the detailed explanation! That makes much more sense now. I didn't realize the COLA adjustments would start immediately with the age 62 benefits, creating that compounding effect. And I completely overlooked the time value of money and tax implications. This gives me a lot more to think about in my decision.

my brother inlaw said hes taking it at 70 for the max amount but i think hes crazy waiting that long. nobody knows how long were gonna be around ya know???

It's not actually crazy depending on his situation. Delaying to 70 increases your benefit by ~77% compared to age 62! If he has other income sources to live on until 70, this can be an excellent strategy, essentially buying the highest possible inflation-protected annuity available. For married couples especially, this can maximize survivor benefits. The 'bird in hand' thinking overlooks the insurance value of maximizing the monthly check that continues as long as you live - exactly when you might need it most.

I went through this EXACT SAME SITUATION last year!!! After going back and forth for MONTHS, I decided to split the difference and claim at 65. Not the full benefit but not waiting until 67 either. It let me retire a bit earlier but still got a decent monthly amount. Sometimes the best answer is somewhere in the middle!!

That's an interesting compromise I hadn't considered. Do you feel good about your decision now that you're receiving benefits? Did you calculate a break-even point for the 65 vs 67 comparison too?