This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
Claiming early gives you smaller cheques for more years; waiting gives larger cheques for fewer. The break-even is the age where the cumulative totals cross. Setting a return above zero discounts the early payments, because money received at 62 could have been invested, and that pushes every break-even later. At a zero rate the comparison is the pure cash one most people have in mind.
Worked examples
Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
the standard benefit ladder
- Monthly benefit if you claim at 62
- $1,400.00
- Monthly benefit at full retirement age
- $2,000.00
- Monthly benefit if you wait to 70
- $2,480.00
- Return you could earn on early payments
- 0%
Age where waiting to 67 overtakes claiming at 6279
arithmetic identity: 23 and 18 years of annual benefit
Open this exampleidentical benefits never break even
- Monthly benefit if you claim at 62
- $2,000.00
- Monthly benefit at full retirement age
- $2,000.00
- Monthly benefit if you wait to 70
- $2,000.00
- Return you could earn on early payments
- 0%
Age where waiting to 67 overtakes claiming at 620
degenerate case: waiting can never catch up if the cheque is the same
Open this examplea discount rate pushes the crossing later
- Monthly benefit if you claim at 62
- $1,400.00
- Monthly benefit at full retirement age
- $2,000.00
- Monthly benefit if you wait to 70
- $2,480.00
- Return you could earn on early payments
- 5%
Age where waiting to 67 overtakes claiming at 6289
boundary: the nominal totals are unchanged while the crossings move out
Open this exampleMethod and limits
What it assumes
- Benefits continue unchanged once claimed, with no cost-of-living adjustment modelled.
- The three benefit figures are yours, taken from your own statement.
What it deliberately does not model
- Spousal and survivor benefits often dominate the decision and are not included.
- Taxation of benefits, and the earnings test if you keep working, are not applied.
Sources
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Why do people say wait until 70?
- Because the increase for delaying is large and guaranteed for life, so anyone in good health with other income to live on is buying a well-priced longevity hedge. The break-even ages here are usually in the late seventies or early eighties.