The following table illustrates the approximate percentage of your full retirement benefit you would receive, depending on the age you start claiming Social Security, assuming a full retirement age (FRA) of 67:
| Age You Start Collecting | Percentage of Full Benefit |
|---|---|
| 62 | 70% |
| 63 | 75% |
| 64 | 80% |
| 65 | 86.7% |
| 66 | 93.3% |
| 67 | 100% |
| 68 | 108% |
| 69 | 116% |
| 70 | 124% |
Note: These percentages are based on a full retirement age of 67. If your FRA is different, the percentages will vary accordingly.
Example Calculation:
Assume your full retirement benefit at age 67 is $1,000 per month.
- If you start collecting at age 62, you’d receive 70% of $1,000, which equals $700 per month.
- If you wait until age 70, you’d receive 124% of $1,000, which equals $1,240 per month.
To determine the break-even point between starting at 62 versus 70:
- Calculate Total Benefits by Age 70:
- Starting at 62: $700/month × 96 months = $67,200
- Starting at 70: $0 (since benefits haven’t started yet)
- Calculate Monthly Difference After Age 70:
- Difference: $1,240 (age 70 benefit) – $700 (age 62 benefit) = $540 more per month
- Determine Break-Even Point:
- Divide the total benefits received by age 70 when starting at 62 by the monthly difference: $67,200 ÷ $540 ≈ 124.4 months
- Convert months to years: 124.4 months ÷ 12 ≈ 10.4 years
- Add this to age 70: 70 + 10.4 ≈ 80.4 years
Therefore, if you live beyond approximately 80 years and 5 months, waiting until age 70 to start benefits would result in higher total lifetime benefits compared to starting at age 62.