When is my Social Security break-even age - confused about retirement timing

Thank you! This is the clearest explanation I've seen yet. So basically I'd need to live past 79 just to break even if I wait until my full retirement age, and almost 83 to justify waiting until 70? That's actually longer than I thought. My family doesn't have the best longevity (parents both passed in their mid-70s), so maybe claiming earlier makes sense for me?

This is excellent advice. Break-even calculations are just one factor in the decision. Health history, current financial needs, and whether you have other income sources should all factor into your claiming strategy. Also worth noting that if you're married, survivor benefits come into play - the higher earner waiting can provide insurance for the surviving spouse who will step into that larger benefit.

Does this actually work? I've been trying to reach someone at SSA for two weeks about my break-even calculations and keep getting disconnected!!!

Yes, it really worked for me. I was skeptical at first, but it saved me so much frustration. The SSA rep I got was really knowledgeable about break-even calculations with continued earnings, which made a big difference in my decision.

Great point about the earnings test. For 2025, you can earn up to $22,320 without reduction if you're under FRA. Above that, they withhold $1 for every $2 earned. However, this isn't a permanent reduction - once you reach FRA, your benefit is recalculated to credit you for those months when benefits were withheld. The taxation issue is also important. Up to 85% of SS benefits can be taxable depending on your combined income, which can significantly impact the effective value of benefits taken early while still working.

This is actually a smart strategy for couples with an age gap. Often it makes sense for the lower earner to claim earlier, providing some household income while the higher earner delays until 70. This maximizes the survivor benefit, which will eventually go to whichever spouse lives longer. The math on break-even points changes significantly when you factor in this survivor benefit protection.

I feel your frustration! I called my local office twice and got different answers each time. One rep told me to claim at 62 and the other said definitely wait. It's like they don't even know themselves sometimes.

That's a common concern, but it's important to understand what "bankruptcy" actually means for Social Security. Even if the trust fund is depleted (currently projected for the early 2030s), the program would still be able to pay about 78% of promised benefits through ongoing payroll taxes. Most proposed reforms would protect those at or near retirement age. Making a claiming decision based on fears of program insolvency isn't generally recommended by financial advisors. Reform is likely before any significant cuts would occur.

That's a really good point about investing the money. I hadn't thought about that. I do have enough savings that I could potentially invest most of my early SS payments if I decided to claim at 62. Do you know of any good spreadsheet templates that include the investment returns in the calculation? I'm not great at creating complex spreadsheets from scratch.

I'm not aware of any free templates that do this well, but tools like Maximize My Social Security or Social Security Solutions offer more sophisticated analysis. Many fee-only financial planners can also run these calculations as a one-time service without requiring ongoing asset management. The basic approach would be to create three columns for each claiming strategy: 1) SS benefits received, 2) investment growth on any benefits not needed for expenses, and 3) the cumulative total. When comparing strategies, the breakeven occurs when the cumulative totals equalize.

That's heartbreaking to hear about your mom's situation. This is exactly why the break-even calculation isn't just about math - it's about real life consequences. The reduced benefit from claiming at 62 compounds over time, especially with modest COLAs that don't keep up with real inflation on essentials like healthcare and housing. Stories like your mom's really drive home why it's worth taking time to carefully consider all factors, not just the immediate need for income.

This is such a thoughtful approach! I really like the idea of including a "health span" factor - that's something I hadn't considered but makes total sense. There's definitely a difference between just living to 85 versus being healthy and active enough to actually enjoy those extra dollars. The psychological peace of mind aspect is huge too. I've been so focused on optimizing the numbers that I forgot about the stress factor. Maybe there's value in just knowing I have that guaranteed income coming in, even if it's not mathematically "optimal." Could you share more about how you structured your spreadsheet? I'm particularly interested in how you factored in the health span consideration - did you just adjust the years you counted in your calculations, or did you weight the later years differently somehow?

@Kayla Morgan I m'really interested in your spreadsheet approach too! As someone who s'been struggling with these calculations, the health "span factor" you mentioned is brilliant - I never thought about the difference between just living longer versus actually being able to enjoy the money. For the original poster @AstroExplorer, this thread has been incredibly helpful. Between the basic break-even math that @Giovanni Moretti laid out and all these other considerations taxes, investment (opportunities, health factors, psychological peace of mind , I)m realizing'this decision is way more nuanced than I initially thought. One thing that keeps coming up is how individual circumstances really matter. Your family health history, your current financial situation, whether you re married,'if you need the income immediately - all of these factors seem just as important as the pure mathematical break-even point. Have you given any thought to meeting with a fee-only financial advisor who specializes in Social Security claiming strategies? It might be worth the consultation fee to get personalized advice based on your specific situation rather than trying to figure this out with generic online calculators.

@Kayla Morgan Your spreadsheet approach sounds incredibly helpful! I m'wondering if you could share a bit more detail about how you weighted the health "span factor." Did you discount the value of benefits received in later years, or just set a cutoff age based on when you realistically expect to be active enough to enjoy the money? Also, for @AstroExplorer - reading through all these responses, it seems like your instinct about family longevity might be really important here. If your parents both passed in their mid-70s, that 78.7 break-even age for waiting until 67 suddenly looks a lot less appealing. Sometimes the safe "choice" isn t'about maximizing dollars but about ensuring you actually get to enjoy the benefits you ve'earned. Have you looked into whether there are any genetic or lifestyle factors that might make your longevity different from your parents? Things like advances in medical care, different lifestyle choices, etc.? It might help inform your decision beyond just the family history.