Using a “break even analysis” to decide when to take Social Security
A “break even analysis” can be a helpful tool when deciding if you should claim your Social Security benefits early, for example at age 62, or if you should wait until a later age in order to receive a higher benefit. In a nutshell, a break even analysis compares the total amount of money you would get from Social Security by claiming at two different ages, and shows you the age at which the amount of money you have collected would be the same in either case - in other words, your break even point. But there are some potential blind spots in such an analysis that you should be aware of, not the least of which is the benefit that would go to a surviving spouse. In this CNBC article by Lorie Konish, the author takes you through the break even analysis process and explains what to do, and not do, when performing the calculations. Click here to read more.
Also, if you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public service to help Americans navigate the complexities of this program. Learn more about it here…
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