Do you know your “Break-even age?”
For those contemplating when to claim their Social Security benefit, it is very helpful to know their so-called “break-even age” – that is, the age at which they’ll collect the same amount of cumulative benefits by claiming at one (later) age versus a different (earlier) age. For example, by claiming earlier – say at age 62 – your benefit amount will be reduced from what it would be at your full retirement age (somewhere between 66 and 67, depending upon the year you were born). So if you were to wait and claim a higher benefit at your full retirement age, at what age would you have collected the same total benefits in either case. In this Kiplinger article by CFP Ken Moraif, the author explains how to determine your break-even age, but also cautions that you should consider factors other than just money when deciding when to claim Social Security. Click here to read more.