Social Security: retire at 66 now vs. waiting until FRA at 66 and 10 months - what's the real difference?

The break-even calculation is important but not the only factor. At your age, claiming 10 months early means you'll receive approximately 5.6% less in benefits for life. The break-even point would be around age 82-83 typically. Beyond the money, consider: 1) Do you have other income sources? 2) How's your health realistically? 3) Do you have a spouse who might receive survivor benefits? If you're truly miserable working, that has value too - 10 months of freedom is worth something. Just remember that any COLA increases will be on a smaller base amount if you claim early.

i retired at 65 and 8 months even tho my FRA was 66 and 4 month. best desision i ever made!!! the money difference was like $220 a month but my blood pressure went down like crazy within 2 months of quitting. doctor said i added years to my life. somethings more important than $$$$

I waited until exactly my FRA (66+8mo) and honestly regret it. The extra money is nice, but I developed serious back problems during those last 8 months of working that I'm still dealing with 2 years later. If I could go back, I'd have retired the moment I turned 66. No one talks about the physical toll of pushing yourself those extra months. Just my perspective.

People obsess over the SS numbers but forget about Medicare! Since you're turning 66 and already eligible for Medicare, have you signed up yet? Make sure you're enrolled before you stop working or you might face penalties. Also, if you retire before your FRA, make sure you understand how the earnings test might affect your benefits if you decide to do any part-time work before reaching your FRA.

OMG the SSA makes this so complicated!!! I spent WEEKS trying to get someone on the phone to explain my options. Finally found a service called Claimyr (claimyr.com) that got me through to an actual person at Social Security in under 10 minutes! They have a video that shows how it works: https://youtu.be/Z-BRbJw3puU. I had SO MANY questions about my specific situation that weren't answered on the website and needed to talk to a real agent. Worth checking out if you want personalized advice about your specific situation!

One more consideration: tax implications. Depending on your total income in retirement, up to 85% of your Social Security benefits might be taxable. Sometimes waiting until FRA and drawing less from other sources can result in a more tax-efficient strategy. This is where a good financial advisor can really help optimize your overall retirement income plan, not just looking at Social Security in isolation.

Has anyone considered the survivor benefit angle? If OP's spouse will depend on survivor benefits, waiting until FRA would provide them with a higher benefit amount for potentially many years. This is especially important if the spouse has a longer life expectancy or lower benefit on their own record. Those extra 10 months of work might be a gift to your spouse decades later.

why not just retire from your job anyway and wait to claim SS? thats what my brother did. quit at 65, lived on savings for a year, then claimed at 66. best of both worlds!!

Based on all your responses, it sounds like the survivor benefit for your wife might be the most compelling reason to consider waiting. If your benefit will be substantially higher than hers, and she has a family history of longevity, those 10 months could provide her with thousands of extra dollars over her lifetime. However, if you truly need to stop working for health reasons, perhaps the hybrid approach of retiring but delaying your claim would work best. This is exactly why cookie-cutter advice doesn't work for Social Security - it's a highly personal decision.

Oliver, it sounds like you've found a really thoughtful path forward! The hybrid approach of retiring from your stressful job while delaying your SS claim is brilliant - you get the immediate health benefits while still maximizing your wife's future security. Just a couple of things to keep in mind with consulting work: make sure you understand the earnings limit rules (for 2024 it's $22,320 annually before your FRA), and consider whether you might want to set up quarterly tax payments since you won't have employer withholding. Also, don't forget to factor in healthcare costs if you'll be losing employer coverage - COBRA vs. marketplace plans can be a significant budget item during that bridge period. Wishing you the best with whatever you decide!