Social Security break-even age confusion - is waiting until FRA actually worth it?

The break-even concept is pretty straightforward. It's the age at which the total benefits you'd receive by waiting equal the total you'd get by claiming early. In your case, if you claim at 62, you get $1,870/month for 5 extra years compared to waiting till 67 for $2,680/month. That's a difference of $810/month. The math works like this:\n\n- By claiming at 62, you collect 60 months of $1,870 = $112,200 before you even reach FRA\n- But once you hit FRA, you're collecting $810 LESS each month than if you had waited\n- So to figure out how many months it takes to 'break even,' divide $112,200 by $810 = about 138 months or 11.5 years\n- That means your break-even age is around 78.5 years (67 + 11.5)\n\nSo if you live past 78-79, you'd collect more total benefits by waiting. If you don't reach that age, claiming early would have given you more total benefits.

Thank you SO much! This actually makes sense now. So basically I'd need to live until nearly 79 to make waiting worthwhile. That's a bit sobering when you put it that way. My family has decent longevity (parents both lived to mid-80s), but there are no guarantees. Do most financial advisors assume everyone will live past their break-even age? Is that why the standard advice is almost always 'wait if you can'?

The break-even calculation above is good, but there's more to consider than just the raw numbers. Some other factors that might influence your decision:\n\n1. Do you NEED the money at 62? If you're still working or have other retirement funds, waiting might make more sense.\n\n2. Inflation protection - those larger checks at 67+ will get the same COLA increases as smaller checks, but the dollar amount increase will be larger.\n\n3. Survivor benefits - if you're married, your spouse could receive your benefit amount after you pass. The higher your benefit, the more they might receive.\n\n4. Tax considerations - lower income in retirement might mean lower tax brackets.\n\nI waited until 68 to claim and don't regret it one bit. The security of that larger monthly check is worth it to me.

gotta love how \

I spent MONTHS trying to figure out the break-even thing when I was deciding when to file, and honestly it nearly drove me crazy!! I made spreadsheets and everything! In the end I decided to take mine at 64 because I figured it was a compromise. My mom took hers at 62 and regretted it later because she lived to 91 and always complained about how small her checks were. But my dad waited till 70 and then only lived 3 more years so he barely got anything. There's REALLY no perfect answer and that's what makes it so hard!!

That's exactly my fear - making the wrong choice and then regretting it later. Your compromise at 64 sounds reasonable. I might consider something similar rather than going to either extreme. It's a bit of a gamble either way.

Another way to think about this: claiming at your FRA of 67 vs. age 62 is essentially \

Yes! The annuity comparison is spot on. I'd add that the

I had never thought about it as buying an annuity - that's a really helpful way to look at it. And I didn't realize private annuities were so much less favorable. Thank you both for this perspective!

break even calculations r useless imo...nobody knows when theyll die! i took mine at 62 and im glad i did...$$$ in hand NOW is better than MAYB more $$$ later. my neighbor waited till 70 and then got cancer 6 mo later...all that waiting for nothin

This is EXACTLY right. Bird in hand! My husband waited till 68 to file and now he has Alzheimers. We could have used that money for some nice vacations while he was still himself. Now what's the point? The government just wants us to wait so they can keep our money longer!!!

One factor often overlooked in break-even calculations is the opportunity cost of spending down other assets while delaying Social Security. If you need income between 62-67 and have to withdraw from retirement accounts to provide it, you're losing the potential growth on those assets.\n\nFor a complete analysis, you should consider:\n\n1. Your other sources of retirement income\n2. Tax implications of different claiming strategies\n3. Your realistic life expectancy based on health and family history\n4. Inflation expectations\n5. Whether you plan to work while collecting benefits before FRA (earnings test)\n\nThe Social Security claiming decision is arguably the most important financial decision most retirees make. It can mean a difference of $100,000+ in lifetime benefits.

The opportunity cost angle is important - I hadn't considered that. I do have a 401(k) that I'd need to start withdrawing from if I wait. So I should factor in what that money could have earned if left invested versus taking SS early. This gets complicated fast!

Have you actually tried calling the SSA to discuss your specific situation? I know it's nearly impossible to get through on their 800 number, but I used a service called Claimyr (claimyr.com) that got me connected to a live agent in under 10 minutes. I was literally waiting on hold for HOURS before discovering them. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU\n\nThe agent I spoke with was actually super helpful and ran different scenarios for my specific situation. They explained how my break-even age would shift based on my earnings history and projected future earnings. Much better than trying to figure it out all on my own.

I didn't know SSA would run different scenarios for you! I've been trying to call them for weeks but keep getting disconnected or told the wait is over 2 hours. I'll check out that service - sounds worth it just to avoid the hold time frustration. Thanks for the tip!

My sister is really good with this stuff and she told me that when you're calculating break-even you have to think about inflation too because $1,870 today isn't the same as $1,870 in 10 years!! So that makes the calculations even more complicated because you have to guess what inflation will be and I don't know how anyone is supposed to do that accurately!!! The whole thing makes my head hurt honestly.

Your sister is right that inflation matters, but Social Security has built-in cost-of-living adjustments (COLAs) that increase your benefit each year based on inflation. So both the early claiming amount and the delayed claiming amount will increase with inflation at the same rate. The dollar gap between them grows, but the percentage remains constant.\n\nThat said, there are still valid concerns about whether the official COLA fully captures retirees' actual expenses, especially healthcare costs which tend to rise faster than general inflation.

My financial planner showed me that for married couples its not just about break even age but also about maximizing survivor benefits. If your the higher earner and you wait, your spouse gets more $ if you die first. Nobody ever mentions THIS part!

I'm actually single, so survivor benefits don't apply in my situation. But that's a really good point for married couples to consider!

After reading through all the comments, I'd suggest creating a simple spreadsheet with three scenarios: claiming at 62, at your FRA of 67, and somewhere in between. Plot the cumulative benefits over time and see where the lines cross - those are your break-even points.\n\nBut remember this isn't just math - it's about your quality of life too. Some questions to ask yourself:\n- Do you enjoy your work enough to continue until FRA?\n- What would you do with the money if you claimed early?\n- How would your stress level change with different benefit amounts?\n- Do you have other pension income or predictable streams?\n\nPersonally, I've noticed people rarely regret waiting for larger benefits, but often regret claiming early once they reach their 80s and realize how much higher their monthly check could have been.

Thanks for this thoughtful advice. I think I'll create that spreadsheet to visualize the scenarios better. The quality of life considerations are important too - I don't love my job but don't hate it either. I think I'm leaning toward a middle path, maybe claiming around 65. That gives me some early retirement years but doesn't reduce the benefit quite as drastically as claiming at 62.