"Break-even" points

Trying to decide when to start your Social Security benefits can be tricky. Should you take reduced benefits or wait until full retirement age? What about delaying your benefits even beyond full retirement age? Everyone wants to be sure they get the most they can, but the decision is different for each individual.

A frequently asked question is "Will I lose money if I take my benefits early?" The short answer is, it depends on how long you live.

You can begin receiving your retirement benefits

• as early as 62 at a permanently reduced rate,
• at your full retirement age without reduction, or
• as late as age 70 with special delayed retirement credits added on.

For most people, the total amount of lifetime benefits you receive is about the same. If you start later, the monthly benefit is larger because your total benefit is spread out over fewer years. If you start early, you get a reduced monthly benefit for more years but you also may reach a "break-even" point after which your total benefits are lower. Some people think of this as the point at which they start "losing" money. Go to our "Break-even" point (Example) page for a demonstration of how "break-even" works.

If you already have a benefit estimate, you can use our Break-Even Age calculator to help you decide whether a larger monthly benefit is worth the wait. If you do not have a benefit estimate, you can get a rough estimate of your benefits from our Quick Calculator.

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.