"Break-even" point (Example)

Age 62 vs. full retirement age

In a choice between starting your benefits at age 62 or at full retirement age, your break-even point would be age 77 years and 10 months.

The total benefits you'd get during the 190 months from age 62 through age 77 and 10 months would be $144,020 (190 x $758). The total you would get for the 144 months from full retirement age through age 77 and 10 months would be $144,000 (144 x $1000). The two amounts are almost equal.

If you live beyond that age, your total lifetime benefits would be greater if you waited to full retirement age to start them.

Age 62 vs. age 70

What if you waited until age 70 and began receiving payments of $1,312? Here, your break-even point compared to starting your benefits at age 62 would be age 80 years and 11 months.

The total benefits you'd get during the 227 months from age 62 through age 80 and 11 months would be $172,066 (227 x $758). If you wait until age 70, the total benefits you would get during the 131 months from age 70 through age 80 and 11 months would be $171,872 (131 x $1,312).

If you live beyond that age, your total lifetime benefits would be more if you didn't start them until age 70.

Full retirement age vs. age 70

If you compare benefits at full retirement age and at age 70, your break-even point would be age 83 years and 4 months.

The total benefits you would get during the 210 months from age 65 and 10 months through age 83 and 4 months would be $210,000. If you wait until age 70, the total benefits you would get during the 160 months from age 70 through age 83 and 4 months would be $209,920 (160 x $1,312).

Reminder: The "break-even" point is not the only thing you should consider when you make your retirement decision. Please read our list of other things to consider before you decide when to start your benefits.