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.
Continue reading “Claim early or wait? The math behind your Social Security decision”