Overview
- Monthly benefits are permanently reduced if you claim before full retirement age, starting at 5/9 of 1% per month for the first 36 months and 5/12 of 1% for each additional month.
- For someone with a full retirement age of 67, the cuts equate to about 6.6% at 66, 13.33% at 65, 20% at 64, 25% at 63, and 30% at 62.
- Delaying past full retirement age increases payments by 2/3 of 1% per month—about 8% per year—until age 70, after which waiting no longer raises benefits.
- The break-even point between claiming at 62 versus 70 is roughly age 80.4, a benchmark that helps weigh smaller checks for longer against larger checks for fewer years.
- Spousal benefits require the primary earner to be receiving payments, and many retirees rely on Social Security as their main income, making timing decisions especially consequential.