If you want to retire early, taking Social Security at 62 may seem like an easy way to replace a paycheck. Waiting until 70, however, could add roughly $1,600 to your monthly benefit. The catch is that you would need another source of income or savings to cover eight years without Social Security payments. One way to decide which option might work better is by calculating your break-even point. This is the age when the larger monthly checks make up for the benefits you gave up earlier.
How Claiming at 62 Changes Your Social Security Benefit
Social Security calculates retirement benefits using your earnings history and adjusts payments based on when benefits begin. If you were born in 1960 or later, full retirement age (FRA) is 67. Claiming at 62 would permanently reduce your benefits by 30%, while waiting past full retirement age could add 8% in delayed retirement credits each year until 70. 1
Social Security announced a 3.6% cost-of-living adjustment (COLA) for 2027. This will raise the average monthly benefit for retired workers from $2,095 to roughly $2,170 in January. 2 To see how delaying your claiming age could increase your check by $1,600, let’s assume that your benefit at FRA is $3,000 per month in 2027. The table shows how your payment could change by claiming at 62, 67 or 70:
| Claiming Age | Adjustment | Monthly Benefit | Difference From Age 62 |
|---|---|---|---|
| 62 | 30% reduction | $2,100 ($3,000 × 70%) | $0 |
| 67 | No adjustment | $3,000 | $900 ($3,000 − $2,100) |
| 70 | 24% increase from delayed retirement credits | $3,720 ($3,000 × 124%) | $1,620 ($3,720 − $2,100) |
Claiming at 62 would cut your $3,000 monthly benefit to $2,100, while waiting until 70 would raise it to $3,720. That is $1,620 more per month, excluding future COLAs, which could raise both amounts over time.
Workers with maximum-taxable earnings throughout their careers can receive much higher benefits. For someone retiring in 2027 after earning at or above Social Security’s taxable maximum since age 22, the maximum monthly benefit is $3,094 at 62, $4,188 at 67 and $5,358 at 70. 3
These numbers represent different workers retiring at different ages in 2027, so they should not be used to measure how your benefit would change by waiting. A financial advisor can help you project what your benefits could look like at different claiming ages based on your specific earnings record.
What Your Claiming Age Can Cost You Over 30 Years
When you claim Social Security also determines how much you could collect over a lifetime. Claiming at 62 gives you eight extra years of smaller checks, but claiming at 70 gives you larger checks over fewer years.
If you claim at 62 and receive $2,100 a month, you would collect $25,200 a year. Over 30 years, or until age 92, that adds up to $756,000 ($2,100 × 360 months). Waiting until 67, by comparison, raises your check to $3,000 ($36,000 annually). Starting five years later adds up to 25 years of payments by 92. This is a total of $900,000 ($3,000 × 300 months).
Claiming at 70 would pay the largest check ($3,720 monthly, $44,640 annually), and with 22 years of payments by 92, you would collect $982,080 ($3,720 × 264 months).
These totals exclude future COLAs, so your actual lifetime benefits could be higher. The table compares total benefits you could get three different claiming ages:
| Age | Claim at 62 | Claim at 67 | Claim at 70 |
|---|---|---|---|
| 70 | $201,600 | $108,000 | $0 |
| 75 | $327,600 | $288,000 | $223,200 |
| 80 | $453,600 | $468,000 | $446,400 |
| 85 | $579,600 | $648,000 | $669,600 |
| 92 | $756,000 | $900,000 | $982,080 |
Claiming at 67 would cost you $126,000 more than taking benefits at 62 ($25,200 × 5). Delaying until 70 would increase that gap to $201,600 ($25,200 × 8). By 92, however, waiting until 70 would leave you with $226,080 more than claiming at 62 and $82,080 more than claiming at 67.
Calculating Your Breakeven Point
Your break-even point is the age when the larger checks from waiting make up for the benefits you gave up by claiming later. You can calculate it with this formula: (Monthly benefit at the earlier age × months you wait) ÷ (difference in monthly benefits) = months after the later claiming age to break even
As an example, if you wait until 67 to collect $3,000 instead of claiming $2,100 at 62, you would divide $126,000 ($2,100 × 60 months) by $900. That would equal 140 months, for a break-even age of about 78 and 8 months. This simplified calculation does not account for future COLAs, taxes or potential investment returns on benefits received earlier.
You can find the information you need to estimate your break-even age on your Social Security statement, available through your my Social Security account. For a deeper analysis, a financial advisor may help you factor in your health, other retirement income, taxes and survivor benefits for a spouse to choose a claiming age.
Photo credit: ©iStock.com/Greggory DiSalvo, ©iStock.com/Natee Meepian
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