When should you claim Social Security? The breakeven math explained

Deciding when to claim Social Security is one of the most consequential financial decisions you will make. Claim at 62 and you get smaller checks for longer. Wait until 70 and you get larger checks for fewer years. The right answer depends on your health, other income, and life expectancy.

How benefits are calculated

Your Full Retirement Age (FRA) is 67 for anyone born in 1960 or later. Claiming before FRA permanently reduces your benefit by 5/9 of 1% per month for the first 36 months and 5/12 of 1% for additional months. Claiming after FRA increases your benefit by 8% per year (delayed retirement credits) until age 70.

Claim at 62: Benefit is reduced by 30% permanently Claim at 67: Full benefit (100%) Claim at 70: Benefit is increased by 24% permanently

The breakeven math

If your full benefit at 67 is $2,000/month:

• At 62: $1,400/month
• At 70: $2,480/month

The breakeven age is when the total lifetime benefits from delaying catch up to the early claiming scenario. For most people, the breakeven falls between ages 78 and 82.

If you claim at 62, you get $1,400/month. By your 78th birthday, you will have collected roughly $268,800. If you waited until 67, you would have collected roughly $277,200 by 78. At 80, the late claimer is ahead permanently.

The life expectancy factor

Men aged 65 have an average life expectancy of about 84. Women about 86. If you are in good health and have a family history of longevity, delaying likely makes sense. If you have serious health issues, claiming early may be the better choice.

Other factors to consider

If you plan to work past 62, your benefits are reduced by $1 for every $2 you earn above the annual limit ($22,320 in 2025). Once you reach FRA, there is no earnings penalty. If you are married, coordinating spousal and survivor benefits adds complexity — the higher earner waiting benefits both.

Use the Social Security Estimator to compare your benefits at every claiming age from 62 to 70.