You can begin claiming your Social Security benefits at age 62 and the latest you can claim is age 70. The longer you wait to claim, the higher your monthly payments will be. So what are the breakeven points if you were to take it earlier rather than later? In other words, at what age would your benefits even out if you were to take it at age 62 versus 66 for example? Find out in this segment of “Your Money, Your Wealth”.
“If I take it early versus full retirement age versus 70, there’s got to be a break even. When do I break even my benefit? You have to live to a certain age so 62 versus 66–this is from a recent study we saw: 78 years in four months, 62 versus 70: 81 and two months and 66 versus 70: 83 years of age and six months. So if you don’t believe you’re going to make it to those ages, you may actually want to take it early. But a lot of us don’t know how long we’re going to live and we’re living longer, in fact the Social Security actuarial tables were developed in the 1980’s, so it’s actually a better deal to wait now than ever before since they have not updated those actuarial tables. So unless you have impaired life expectancy, you’re generally better off waiting”