Social Security Claiming Calculator

How Claiming Age Affects Benefits

Social Security retirement benefits can be claimed as early as age 62 or as late as age 70. The age you choose permanently affects the monthly benefit amount: claiming before Full Retirement Age (FRA) reduces it, and delaying past FRA increases it through Delayed Retirement Credits. How the claim ages compare depends on factors specific to you, most importantly your expected longevity and your need for income during retirement.

Claiming Before FRA

Claiming before FRA permanently reduces the monthly benefit. The reduction is 5/9 of 1% per month for the first 36 months before FRA, and 5/12 of 1% per month for any additional months earlier than that. For someone with an FRA of 67 who claims at 62, the lifetime monthly benefit is reduced by 30%.

Delaying Past FRA

Each month a claim is delayed past FRA adds 2/3 of 1% to the eventual monthly benefit, which is 8% per year. Delayed Retirement Credits stop accruing at age 70, so there is no additional benefit to waiting beyond that age.

The Breakeven Trade-off

Claiming early provides more years of benefits at a lower monthly rate. Delaying provides a higher monthly benefit but fewer years to collect it. The breakeven age is the point at which the cumulative dollars from the delayed claim catch up to the cumulative dollars from the earlier claim. If a claimant lives beyond the breakeven age, delaying produces a higher total; if not, claiming earlier produces more. Expected longevity is therefore central to the decision.

COLA and Discounting

Social Security applies an annual cost-of-living adjustment (COLA) tied to inflation. The 2.8% COLA for 2026 can be toggled above to model how inflation-linked growth compounds the monthly benefit over time. A separate discount rate option translates future benefit dollars into present value, reflecting the time value of money or an investor’s required rate of return.

The Earnings Test

Claimants who collect benefits before reaching FRA while continuing to earn wages are subject to the earnings test. In 2026, SSA withholds $1 of benefits for every $2 of earnings above $24,480. The withheld benefits are not permanently lost. They are credited back at FRA in the form of a higher monthly benefit. However, they do reduce cash flow during the working years prior to FRA.