Home Forums Hunting & Shooting Hunter's Campfire Social Security question

Quit your job and go $100k into debt

Just to keep the numbers simple and anonymous, let's say you'd get $1000/month at age 62, and $1500 at 66. You are about to turn 62.

If you wait, you get nothing for those four years.

If you start taking SS now, you'll receive $48,000 before turning 66.

It will take you 96 months (eight years) after turning 66 to make up the $48,000 you did not receive. So you really don't get any "more" until you pass age 74. The real difference then is 12 years to "break even" not four.



In my case, I started taking SS the moment I was eligible. I used that money to pay all my bills and become debt free within the first couple years. My SS is now my pocket money for the month because I also get my Air Force pension. I would have "broken even" in 2021 but I already am drawing more than I can spend, so for me, taking SS as soon as eligible was the smart choice.

Your situation will certainly be different, so consider carefully.

If you were born in 1956 your full retirement age is 66 and 4 months

Remember, the earliest a person can start receiving Social Security retirement benefits will remain age 62.

If you start receiving retirement benefits at:

age 62, you will get 73.3 percent of the monthly benefit because you will be getting benefits for an additional 52 months.
age 65, you will get 91.1 percent of the monthly benefit because you will be getting benefits for an additional 16months.

If you start receiving benefits as a spouse at your full retirement age, you will get 50 percent of the monthly benefit your spouse would receive if their benefits started at full retirement age. If you start receiving benefits at:

age 62, you will get 34.2 percent of the monthly benefit instead of 50 percent because you will be getting benefits for an additional 52 months.
age 65, you will get 44.4 percent of the monthly benefit instead of 50 percent because you will be getting benefits for an additional 16 months.

How Your Social Security Benefit Is Reduced:

Wage Earner .... Spouse

62 73.3% 34.2%
62 + 1 month 73.8 34.4
62 + 2 months 74.2 34.6
62 + 3 months 74.6 34.8
62 + 4 months 75.0 35.0
62 + 5 months 75.4 35.2
62 + 6 months 75.8 35.4
62 + 7 months 76.3 35.6
62 + 8 months 76.7 35.8
62 + 9 months 77.1 36.0
62 + 10 months 77.5 36.3
62 + 11 months 77.9 36.5
63 78.3 36.7
63 + 1 month 78.8 36.9
63 + 2 months 79.2 37.1
63 + 3 months 79.6 37.3
63 + 4 months 80.0 37.5
63 + 5 months 80.6 37.8
63 + 6 months 81.1 38.2
63 + 7 months 81.7 38.5
63 + 8 months 82.2 38.9
63 + 9 months 82.8 39.2
63 + 10 months 83.3 39.6
63 + 11 months 83.9 39.9
64 84.4 40.3
64 + 1 month 85.0 40.6
64 + 2 months 85.6 41.0
64 + 3 months 86.1 41.3
64 + 4 months 86.7 41.7
64 + 5 months 87.2 42.0
64 + 6 months 87.8 42.4
64 + 7 months 88.3 42.7
64 + 8 months 88.9 43.1
64 + 9 months 89.4 43.4
64 + 10 months 90.0 43.8
64 + 11 months 90.6 44.1
65 91.1 44.4
65 + 1 month 91.7 44.8
65 + 2 months 92.2 45.1
65 + 3 months 92.8 45.5
65 + 4 months 93.3 45.8
65 + 5 months 93.9 46.2
65 + 6 months 94.4 46.5
65 + 7 months 95.0 46.9
65 + 8 months 95.6 47.2
65 + 9 months 96.1 47.6
65 + 10 months 96.7 47.9
65 + 11 months 97.2 48.3
66 97.8 48.6
66 + 1 month 98.3 49.0
66 + 2 months 98.9 49.3
66 + 3 months 99.4 49.7
66 + 4 months 100.0 50.0

*If your birthday is on the 1st of the month, we figure your benefit as if your birthday were in the previous month.
Related Information

If you can wait a few years or longer, you can boost your benefits—and your spouse's.

Key takeaways

If you claim Social Security at age 62, rather than waiting until your full retirement age (FRA), you can expect up to a 30% reduction in monthly benefits.
For every year you delay past your FRA up to age 70, you get an 8% increase in your benefit. So, if you can afford it, waiting could be the better option.
Health status, longevity, and retirement lifestyle are 3 variables that can play a role in your decision on when to claim your Social Security benefits.

When it comes to Social Security, it can be tempting to take the money and run as soon as you're eligible—typically at age 62. After all, you've likely been paying into the system for all of your working life, and you're ready to receive your benefits. Plus, guaranteed monthly income is nice to have.

Health status, longevity, and retirement lifestyle are 3 key factors that can play a role in your decision on when to claim your Social Security benefits. You may not be able to predict the true impact of these variables, but you can rely on the simple fact that if you claim early versus later, you will likely have lower benefits from Social Security to help fund your retirement over the next 20–30+ years.

If you start taking Social Security at age 62, rather than waiting until your full retirement age (FRA), you can expect up to a 30% reduction in monthly benefits with lesser reductions as you approach FRA. Remember, FRA is no longer age 65. It now ranges from 66 to 67, depending on your date of birth (see your full retirement ageOpens in a new window). And your annual cost-of-living adjustment (COLA) is based on your benefit. So if you begin Social Security at 62, and start with reduced benefits, your COLA-adjusted benefit will be lower too.

Waiting to claim your Social Security benefit will result in a higher benefit. For every year you delay past your FRA, you get an 8% increase in your benefit. That could be at least a 24% higher monthly benefit if you delay claiming until age 70. But, make sure to evaluate your decision based on how much you've saved for retirement, your other sources of income in retirement, and your expectations for longevity.

While many people could benefit from waiting to age 70 to take Social Security payments, others may need this source of guaranteed income sooner to help pay their bills, or may anticipate that they may not live long enough to reap the rewards of delaying.
For illustrative purposes only. Note: All lifetime benefits are expressed in today's dollars, and life expectancy of 89. The numbers are sensitive to, and would change with, the discount rate (the rate used when discounting the future benefit payments for each claiming age) and life expectancy assumptions.
The downside of claiming early: Reduced benefits

Consider the following hypothetical example. Colleen is 62 as of 2019. If Colleen waits until age 66 and 6 months (her FRA) to collect, she will receive approximately $2,000 a month. However, if she begins taking benefits at age 62, she'll only receive $1,450 a month. This "early retirement" penalty is permanent and results in her receiving up to 28% less year after year.

However, if Colleen waits until age 70, her monthly benefits will increase another 28% over what she would receive at her FRA, to a total of $2,560 per month.1 If she were to live to age 89, her lifetime benefits would be about $114,000 more, or at least 24% greater, because she had waited until age 70 to collect Social Security benefits.2 (Note: All figures are in today's dollars and before tax; the actual benefit would be adjusted for inflation and would possibly be subject to income tax.)
Spouses and Social Security

Several Social Security claiming strategies were eliminated in 2015 including the ability to file a "restricted application for spousal benefits," which allowed you to claim benefits based on your spouse's work record and then switch to claiming on your own work record at a later date. This strategy is no longer possible if you turned age 62 after December 31, 2015.

Claiming before your FRA on a spouse's record means you'll lose even more than claiming on your own record—the benefit reduction for a spouse is up to 35% while the reduction for claiming your own benefit is up to 30%. For instance, if you're the spouse of Colleen in the above example and you are the same age, you'd be eligible for only $675 a month at age 62, 33% less than the $1000 a month you would get at your FRA of 66 and 6 months.

Read Viewpoints on Fidelity.com: Social Security tips for couples

Not married? Read Viewpoints on Fidelity.com: Social Security tips for singles or Social Security and divorce

Your decision to take benefits early could outlive you. If you were to die before your spouse, they would be eligible to receive your monthly amount as a survivor benefit—if it's higher than their own amount. But if you take your benefits early, say at age 62 versus waiting until age 70, your spouse's survivor Social Security benefit could be up to 30% less for the remainder of their lifetime.

Retirement and SS are different objects. You can retire and wait for SS. Early SS funds are reduced and taxed. Consider funding the daily retirement with savings until the 66+2. Cash flow will be better an you get the SS COLA on a larger number. Once SS starts you will be in good condition for start of RDM at 70. A (Pension+SS+ RDM) is a plan for success.


My only suggestion is start the whole journey with a new truck and RV and go out and enjoy your self.

I really don't understand the break even point calculation.
Most people say the number is 80, but does this include the missed interest on your 401K? Naturally since you dont drawl on SS you have to use savings, and that savings could be compounding.
So I think the break even point is over 80, and the average life span in the US is 76. So I am thinking taking the cash at 62.

Yep, and part B went up 1% if I remember right. Part D went up a couple bucks too. So basically the COLA only barely pays for the cost increases.

Did the new truck 3 years a go, looking at ravel trailers now. Employer would like me to work part time for 3 months or so this spring ,will look at waiting 3 months more on the SS. MB

Seems one question is what you are going to spend the money on, if you defer SS benefits and live in to your 90s, the financial wizards will say you’ve come out ahead. But you’re not gonna spend that extra money on a sheep hunt, and how much can you spend sitting in your rocker renting movies on iTunes?
Obviously if you rely solely on SS it’s a different equation, but you might decide to spend the money while you can, on stuff that’s fun. And you can have more fun spending money in your 50s and 60s than you can in your 90s.