Overview
- Americans can file as early as 62 or wait until 70, with benefits reduced if taken before full retirement age and increased by roughly 8% per year after FRA until 70.
- A breakeven analysis helps compare lifetime payouts from claiming earlier versus delaying, and the Social Security Administration offers tools to run the numbers.
- For 2025, benefits are reduced $1 for every $2 earned above $23,400 before FRA, and $1 for every $3 above $62,160 in the months before reaching FRA.
- Medicare starts at 65, creating a potential 62–65 gap that may require larger portfolio withdrawals to cover healthcare and living costs.
- Experts say forced early retirement due to health issues can justify claiming sooner to preserve savings, though delaying may still make sense if life expectancy appears unaffected and assets can cover interim expenses.