Does this include COLA?

No. It treats benefits as flat in nominal terms. In reality, both streams would receive COLAs; breakeven may shift slightly with COLA.

What about earnings test before FRA?

Not modeled. If you work and earn above the earnings test threshold before FRA, benefits can be withheld and partially adjusted later.

Can I include spousal/survivor strategies?

No. This is a single-benefit comparison. Spousal/survivor strategies can change the optimal ages—consider a specialized tool for those cases.

Why stop at age 70 for delayed credits?

SSA stops delayed retirement credits at 70; there is no benefit to delaying your own retirement benefit past 70.

Should I discount for time value of money?

This tool does not discount. If you prefer present-value analysis, apply your own discount rate to each stream and recompute breakeven.

Can I model survivor benefits or spousal coordination?

Not here. Survivor/spousal strategies can change optimal timing; use a specialized spousal calculator or planner for those decisions.

What if I keep working before FRA?

Earnings above the test limit can reduce benefits temporarily. This tool doesn’t apply the earnings test—factor that separately if you’ll work pre-FRA.

What if my PIA changes due to additional earnings?

SSA can recalc benefits if you add higher-earning years. This tool uses a static PIA; update it with your latest SSA statement for better accuracy.

Should I factor taxes and healthcare costs?

Yes in real planning. This tool compares gross benefits only; taxes and Medicare premiums can affect the optimal claiming age.

finance calculator

Social Security Claiming Breakeven

Compare claiming early vs delaying Social Security to find the breakeven age where waiting starts to pay off.

Results

Early monthly benefit: $1,400
Delayed monthly benefit: $2,480
Breakeven age: 80.37 years
Months to breakeven (from early claim start): 220.44
Early cumulative at breakeven: $308,622
Delayed cumulative at breakeven: $308,622

How to use this calculator

Enter your PIA (full retirement age monthly benefit).
Enter your FRA and the ages you’d claim early and late.
Review early vs delayed monthly benefits and the breakeven age/month when delaying overtakes early claiming.
Try different early/delayed ages to see how much waiting moves the breakeven point.
If working pre-FRA, consider a separate check on earnings-test impacts before relying on the breakeven here.

Inputs explained

PIA monthly benefit: Primary Insurance Amount—your FRA monthly benefit before reductions/credits.
Full retirement age: Your SSA-determined FRA (e.g., 67 for many born 1960+).
Early claim age: Age you’d claim early (minimum 62); reduction applies vs PIA.
Delayed claim age: Age you’d delay to (up to 70); delayed retirement credits apply after FRA.

How it works

Early reduction: 5/9% per month for the first 36 months before FRA, then 5/12% per additional month.

Delayed credits: 2/3% per month after FRA up to age 70.

Breakeven solves when delayed cumulative benefits overtake early benefits based on the monthly amounts and the wait period.

Formula

Early benefit = PIA − reductions (5/9% per month for first 36 months before FRA, plus 5/12% for additional months). Delayed benefit = PIA × (1 + delayed credits of 2/3% per month from FRA to delayed age). Breakeven age solves cumulative early payments vs cumulative delayed payments starting at delayed claim.

When to use it

Deciding whether to claim at 62–63 vs waiting to FRA or 70.
Modeling how delaying to 70 changes monthly income and long-term cumulative payouts.
Explaining breakeven math in retirement planning sessions.
Testing how different FRAs (birth years) shift the breakeven age.
Showing why short life expectancy or cash needs may favor early claiming despite higher later checks.
Comparing the breakeven age to your own longevity assumptions to choose a strategy.
Illustrating how one-year shifts (e.g., 63 vs 64) move breakeven timing for clients.

Tips & cautions

Health and longevity expectations matter: if expected lifespan is shorter than breakeven, early may be prudent.
Spousal/survivor strategies are not modeled—coordinate with a spouse for optimal claiming.
COLA is ignored here; in reality both streams would get COLA, which can shift breakeven slightly.
If you keep working before FRA, earnings test could reduce benefits; not modeled here.
Delayed retirement credits stop at 70; no benefit to waiting longer for your own worker benefit.
Run multiple scenarios to see how shifting claim ages by a year changes breakeven timing.
If you anticipate claiming Medicare at 65, remember Part B premiums and income-related surcharges aren’t reflected here.
For liquidity needs, consider partial work or savings drawdown to bridge until a later claim age if breakeven favors delaying.
Remember taxation of benefits: up to 85% of Social Security can be taxable; this tool compares gross benefits only.
If you have pensions with Social Security offsets (e.g., WEP/GPO), actual benefits can differ; not modeled here.
Use SSA’s official calculator or statement to verify PIA inputs for accuracy before deciding.
Ignores COLA and spousal benefits; single-benefit comparison only.
Assumes standard SSA reduction/credit rules and monthly payments.
Does not discount future benefits for time value of money.
Does not model earnings test reductions before FRA or subsequent adjustments.
Does not include survivor/spousal coordination, taxation of benefits, or Medicare premium impacts.
Breakeven is a simple crossover; longevity risk, inflation, and investment returns are not considered.
Does not handle claiming after 70 (no further credits) or disability-to-retirement benefit transitions.
Does not reflect WEP/GPO adjustments for certain pensions.
Assumes uninterrupted benefit streams; does not model clawbacks or pauses.

Worked examples

Classic 62 vs 70 decision

PIA $2,000; FRA 67; early 62; delay 70.
Early benefit ≈ $1,400; delayed benefit ≈ $2,480.
Breakeven around age 78–79 when cumulative delayed surpasses early.

62 vs FRA

PIA $1,800; FRA 67; early 62; delay 67.
Early ≈ $1,260; FRA $1,800.
Breakeven roughly late 70s when the higher FRA benefit overtakes the head start from early claiming.

64 vs 68 scenario

PIA $2,500; FRA 67; early 64; delay 68.
Early ≈ $2,083; delayed ≈ $2,683.
Breakeven typically in early 80s—waiting longer pushes breakeven out.

Longevity tilt

Assume strong family longevity and desire to hedge late-life income.
PIA $2,200; FRA 67; early 63; delay 70 → early ≈ $1,540; delayed ≈ $2,728.
Breakeven pushes into late 70s; a longer lifespan makes the higher check more valuable over time.

Shorter wait scenario

PIA $1,900; FRA 67; early 63; delay 66.
Early ≈ $1,463; delayed ≈ $1,900.
Breakeven arrives sooner (often mid-70s) because the delay period is shorter and credits smaller than waiting to 70.

Deep dive

Use this Social Security claiming breakeven calculator to compare claiming early vs delaying to age 70.

Enter PIA, FRA, and claim ages to see early vs delayed monthly benefits and the breakeven age.

Test 62 vs 67 vs 70 scenarios to find when delaying starts to pay off.

See how monthly reductions and delayed credits change your lifetime breakeven point.

Model quick what-if scenarios before coordinating with spousal or survivor strategies.

Estimate how shifting claim ages by a year or two moves your breakeven point and long-term income.

Use gross benefit comparisons here, then layer taxes, earnings test, and healthcare to finalize your plan.

FAQs

Does this include COLA?: No. It treats benefits as flat in nominal terms. In reality, both streams would receive COLAs; breakeven may shift slightly with COLA.
What about earnings test before FRA?: Not modeled. If you work and earn above the earnings test threshold before FRA, benefits can be withheld and partially adjusted later.
Can I include spousal/survivor strategies?: No. This is a single-benefit comparison. Spousal/survivor strategies can change the optimal ages—consider a specialized tool for those cases.
Why stop at age 70 for delayed credits?: SSA stops delayed retirement credits at 70; there is no benefit to delaying your own retirement benefit past 70.
Should I discount for time value of money?: This tool does not discount. If you prefer present-value analysis, apply your own discount rate to each stream and recompute breakeven.
Can I model survivor benefits or spousal coordination?: Not here. Survivor/spousal strategies can change optimal timing; use a specialized spousal calculator or planner for those decisions.
What if I keep working before FRA?: Earnings above the test limit can reduce benefits temporarily. This tool doesn’t apply the earnings test—factor that separately if you’ll work pre-FRA.
What if my PIA changes due to additional earnings?: SSA can recalc benefits if you add higher-earning years. This tool uses a static PIA; update it with your latest SSA statement for better accuracy.
Should I factor taxes and healthcare costs?: Yes in real planning. This tool compares gross benefits only; taxes and Medicare premiums can affect the optimal claiming age.

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Simplified Social Security breakeven estimate. Excludes COLA, earnings test effects, spousal/survivor strategies, taxation of benefits, Medicare premiums, and time value of money. Confirm with SSA statements and a planner before making claiming decisions.