Social Security Timing
Should you claim Social Security at 62, 67 or 70?
When you start Social Security sets your check for life. Enter your birth date and your benefit at full retirement age to see your monthly amount at every age from 62 to 70, when waiting pays off, and what each choice could add up to. Made for retirees and near-retirees in Ocala, The Villages, Gainesville and across North Central Florida.
How this is calculated
Full retirement age. 66 if you were born 1943–1954, rising by two months a year to 67 for anyone born in 1960 or later. If you were born on January 1, Social Security uses the year before.
Starting early. Your benefit drops 5/9 of 1% for each of the first 36 months before full retirement age, and 5/12 of 1% for each month beyond that. Starting five years early cuts it by 30%.
Waiting. Each month you wait past full retirement age adds 2/3 of 1% (8% a year), up to age 70. Nothing more is added after 70.
Your exact birthday. Social Security says you reach an age the day before your birthday. To be paid at 62, you must be 62 for the whole month. So benefits at 62 start in your birthday month only if you were born on the 1st or 2nd. Otherwise they start the month after. Each row shows the month benefits would start.
Rounding. As Social Security does: the cut for starting early is rounded up to the next dime, the credit for waiting is rounded down to the dime, and the monthly payment is rounded down to the dollar.
Totals and break-even ages. Totals add each monthly benefit from the start month up to the month you reach the age you chose. A break-even age is when the later start’s running total first catches up with the earlier one.
Not included. Taxes, yearly cost-of-living raises, Medicare premiums taken from your check, the earnings limit if you work before full retirement age, and spousal or survivor benefits. All figures are in today’s dollars.
More than a break-even age
The break-even age tells you how long you need to live for waiting to pay off. It is a useful start, but it is not the whole decision. Your health, your other income, and whether you need the money now all matter.
If you are married, timing matters even more. When one spouse dies, the survivor keeps the larger of the two checks. Waiting on the larger benefit can mean a bigger check for the spouse who lives longer. This tool does not include spousal or survivor benefits.
Taxes play a part too. Up to 85% of Social Security can be taxable, depending on your other income. How you draw from savings while you wait can change that.
Get the timing right
One decision, paid every month for life.
In one complimentary meeting we’ll run your claiming options alongside your savings, taxes and spouse’s benefits, so the decision is based on your numbers.