Social Security Break-Even Calculator: the facts

1. Counting the checks alone, claiming at 70 instead of 62 breaks even at 80 and 4 months; claiming at 67 instead of 62 breaks even at 78 and 8 months; 70 instead of 67 at 82 and 6 months.
2. If every early check is invested and earns 4 percent a year, the 62-versus-70 break-even moves to 86 and 6 months; at 6 percent it moves to 95 and 2 months. That gap is the opportunity cost of waiting.
3. At 4 percent the 62-versus-67 break-even is 84 and 11 months and the 67-versus-70 break-even is 88 and 8 months: each step of waiting has its own crossing.
4. The break-even age is the same whatever the benefit is, because both claims scale with the same full-retirement-age amount; a $1,000 benefit and a $4,000 benefit cross at the same age.
5. A cost-of-living increase applies to both claims alike and barely moves the crossing; the assumed return moves it by years. The return is the assumption to argue about.
6. The rules behind the two benefits are fixed: five-ninths of a percent a month for the first 36 months early, five-twelfths beyond, and two-thirds of a percent a month late until 70 (20 CFR 404.410 and 404.313).

Educational only, not investment, tax, or legal advice. Results are hypothetical estimates that vary with each use and over time and are not guaranteed accurate or complete. Using this tool creates no client relationship with Considerate Capital, and the site that linked here is not affiliated with it. By using it you agree to the tool terms.