Claim Social Security at 62 or 70? The Break-Even Age Is About 80. Here’s the One Number That Moves It
Claiming Social Security early or late can look like a coin flip until you test it against how long you actually live. One surprising claiming age beats both extremes in the middle, and the gaps at the edges can reach…
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Seniors looking to claim Social Security have a big decision to make. Taking benefits at 62 means reducing them substantially for life, while delaying a claim until 70 means scoring boosted monthly checks for life.
If you live until about age 80, you’ll receive a similar amount of Social Security in either claiming scenario. But when you live a much shorter or longer life, the math changes in a dramatic way.
Why you need to calculate your break-even age
Before you decide whether to claim Social Security early, which you can do starting at 62, versus on time or late, you need to calculate your break-even age. That’s the age when you’d receive roughly the same lifetime Social Security payment regardless of an early versus late claim.
If you’re looking at taking benefits at either age 62 or 70, you should know that your break-even age is around age 80. For example, let’s say you’d get $2,000 a month in Social Security at a full retirement age (FRA) of 67. Filing at either 62 or 80 gives you about $300,000 by age 80.
Interestingly enough, in that scenario, you’d come out ahead the most by claiming Social Security at FRA. By filing at 67, you’d have about an extra $10,000 compared to claiming at 62 or 70.
It’s important to calculate your break-even age and then use your health and family history to guide your decision. Poor health and parents who passed away young should help you lean toward an earlier filing age. Strong health and parents who are still alive in their 90s should generally push you toward a later claim.
A short or long lifespan matters
In the example above, we saw that claiming Social Security at either 62 or 70 results in about $300,000 in total benefits. But watch what happens if you live only to age 74.
In that case, filing for Social Security at 62 is your best bet by far. In that scenario, you get about $201,000 in lifetime Social Security benefits, compared to $168,000 at FRA (age 67) and $119,000 at age 70.
Now, let’s flip things around and apply a really long lifespan where you don’t pass away until age 95. In that case, claiming Social Security at 70 is the clear winner.
In that scenario, an age-70 claim gives you a total of $744,000 in Social Security. A claim at FRA gives you $672,000, and a claim at age 62 gives you about $554,000.
Now, without a crystal ball, you can’t predict exactly how long you’ll live. And even a strong family history and good health in your early 60s don’t guarantee you’ll live into your 90s.
But your break-even age should be the starting point of your decision. And from there, you can consider your health, family history, and other factors, such as your need for money now versus later and your retirement savings level, to figure out when to file.
Just know that there’s no right or wrong answer. And remember, Social Security is designed to pay you the same lifetime total, more or less, regardless of when you file if you live an average lifespan. So that’s something to keep in mind if you’re having a hard time making a decision.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, The Washington Post, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
