Full Retirement Age Sets the Baseline
Social Security calculates a primary insurance amount from your 35 highest-earning years, indexed for wage growth. That figure is payable in full at your full retirement age, which depends on birth year:
| Birth year | Full retirement age |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1957 | 66 and 6 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
Claiming Early or Late
The adjustment is fixed by statute, not by circumstance. Claiming before full retirement age reduces the benefit by 5/9 of 1% for each of the first 36 early months and 5/12 of 1% for each month beyond that. Claiming after adds 8% a year in delayed retirement credits, which stop accruing at 70.
For someone with a full retirement age of 67, that produces a 30% cut at 62 and a 24% increase at 70 — a spread of roughly 77% between the earliest and latest choice, for life, indexed to inflation.
The Break-Even Question
Claiming at 62 gives smaller cheques for longer; waiting to 70 gives larger cheques for fewer years. The crossover typically lands between ages 80 and 82. Live past that and waiting wins; die before and claiming early wins.
The break-even framing is incomplete, though. Social Security is inflation-indexed income that cannot be outlived, which makes it insurance against living a very long time, not an investment to optimise. For a married couple, the higher earner's benefit also becomes the survivor benefit — so delaying the larger of the two protects whichever spouse lives longer.
When Claiming Early Makes Sense
- Health problems or a family history that shortens life expectancy.
- No other income and no ability to keep working — a smaller benefit now beats debt.
- The lower-earning spouse claiming early while the higher earner delays, which captures some income without sacrificing the survivor benefit.
Working While Claiming
Before full retirement age, the earnings test withholds $1 of benefit for every $2 earned above roughly $23,400 a year. This is not a permanent loss — the benefit is recalculated upward at full retirement age — but it does suppress income in the meantime. From full retirement age the test disappears entirely.
Up to 85% of benefits become taxable once combined income exceeds modest thresholds, which have not been indexed since 1984 and therefore capture more retirees every year.
Frequently Asked Questions
Will Social Security run out?
The trust fund is projected to be depleted in the mid-2030s, after which incoming payroll taxes would still cover roughly 75–80% of scheduled benefits. Depletion means a shortfall requiring legislative repair, not a zero.
How do I find my benefit amount?
Create an account at ssa.gov and read the Social Security Statement, which shows your estimated benefit at 62, at full retirement age and at 70, based on your actual earnings record.
Can I change my mind after claiming?
Within 12 months you can withdraw the application and repay what you received, once per lifetime. After full retirement age you can also suspend the benefit to earn delayed credits until 70.