I recently had a conversation with a friend who is 61 years old and considering retirement. He asked when I thought he should begin collecting his Social Security benefits. While there are many factors to consider, we started by discussing his Social Security breakeven age—the point at which waiting to claim benefits begins to pay off.
Deciding when to claim Social Security is one of the most important retirement decisions you’ll make. Claim at 62 and you’ll receive benefits sooner, but your monthly payments will be smaller. Wait until 70 and you’ll receive a larger monthly benefit for the rest of your life.
So, should you claim early or wait? Calculating your breakeven age is a simple, practical way to understand the trade-offs and help make a more informed decision.
How your claiming age affects your benefit
For people born in 1960 or later, full retirement age is 67.
- Age 62: Receive approximately 70% of your full retirement age benefit.
- Age 67: Receive 100% of your full retirement age benefit.
- Age 70: Receive approximately 124% of your full retirement age benefit.
For example, if your estimated benefit at age 67 is $2,000 per month, your approximate benefits would be $1,400 if you claimed at 62, and $2,480 if you waited until the age of 70.
Your actual benefit depends on your earnings history and Social Security record. You can get personalized estimates at my Social Security.
What is your breakeven age?
Your breakeven age is when the total benefits from waiting to claim catch up with the total benefits you would have received by claiming earlier.
Consider waiting from age 67 to 70. You give up $72,000 in benefits during those three years ($2,000 × 36 months). In return, you receive an additional $480 per month starting at age 70.
Divide $72,000 by $480 to get 150 months, or 12.5 years. Add that to age 70, and your breakeven age is approximately 82½.
If you live beyond that age, waiting until 70 produces more cumulative benefits under these simplified assumptions. If you die earlier, claiming at 67 would have produced more benefits. This comparison does not account for cost-of-living adjustments, investment earnings, taxes, or the value of having money earlier.
You can use the same calculation to compare ages 62 and 67, or 62 and 70. An online calculator can do the math for you.
Four factors that can change your decision
1. Your health and life expectancy
The longer you live, the more valuable a larger monthly benefit becomes. At age 62, average remaining life expectancy is about 20 years for men (~82) and 23 years for women (~85), according to the Social Security Administration’s 2023 Period Life Table used in the 2026 Trustees Report. As noted by RJ Weiss CFP, these are averages and not deadlines, with 55% of men alive at 62 reaching age 82 and about 25% reaching 90.
2. Your spouse
Married couples should evaluate benefits together. A higher-earning spouse who delays claiming may provide a larger survivor benefit if they die first. Spousal and survivor benefits follow different rules, so compare both spouses’ benefits rather than looking at each person in isolation.
3. Your need for income
If you need Social Security to cover essential expenses, claiming earlier may be necessary. If savings, pensions, or other income can cover your expenses, delaying may help provide more guaranteed income later in retirement.
4. The risk of future benefit changes
Social Security faces long-term funding challenges, and Congress may change taxes or benefits. But claiming early permanently reduces your monthly benefit under current rules. Don’t base your decision solely on the fear that benefits will disappear. Instead, test whether your retirement financial plan still works if future benefits are reduced.
Also consider taxes, continued employment, Medicare enrollment at 65, inflation, and the effect of investment returns on money received earlier.
Make the decision using your retirement financial plan
Compare claiming at 62, 67, and 70. Calculate the breakeven ages, then compare the cumulative benefits you could receive by ages 75, 80, 85, and 90.
The earliest claiming age isn’t automatically best, and the largest monthly check isn’t automatically best either. Your health, household income needs, spouse’s benefits, savings, and retirement goals all matter.
Use breakeven analysis to understand the trade-off between receiving benefits sooner and receiving more income later. Then choose the strategy that best supports the retirement you want to live.
For a visual summary of this content, see the accompanying two-page information brief.
It Pays to Know!
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Educational information only. Consult with a qualified professional for advice specific to your situation, as needed.