Finance & Economics / Personal Finance

Social Security Break-Even Calculator

FRA depends on your birth year. Most people born 1960+ have FRA of 67.

Check your estimate at ssa.gov/myaccount

Understanding Social Security Break-Even Analysis

What is break-even age? The age at which total lifetime benefits from claiming later surpass the total from claiming earlier.

Key Claiming Rules:
  • Earliest claim age: 62 (with permanent reduction)
  • Full Retirement Age (FRA): 66-67 depending on birth year
  • Latest beneficial claim age: 70 (no increase after 70)
  • Benefits increase 8% per year for each year delayed after FRA
  • Benefits reduced ~6-7% per year for claiming before FRA
Other Important Factors:
  • Earnings Test: If claiming before FRA while working, benefits may be reduced
  • Spousal Benefits: May affect optimal claiming strategy for married couples
  • Survivor Benefits: Higher earner delaying maximizes survivor benefits
  • Taxes: Up to 85% of benefits may be taxable depending on income
  • Medicare: Separate from Social Security; starts at 65 regardless of claiming age

Important: This calculator provides general guidance. Consult a financial advisor or Social Security representative for personalized advice based on your complete financial situation.