{
  "id": "social-security-break-even",
  "version": "f634d10eb99e",
  "status": "published",
  "name": "Social Security Break Even Calculator",
  "question": "My Social Security break even age?",
  "summary": "Compares two Social Security claiming ages and finds the break-even age at which the later, larger benefit has paid as much in total as the earlier, smaller one.",
  "category": "finance",
  "subcategory": "retirement",
  "url": "https://www.acalculator.org/finance/social-security-break-even-calculator",
  "markdown": "https://www.acalculator.org/finance/social-security-break-even-calculator.md",
  "kind": "schedule",
  "method": "Benefit at each age = PIA × early reduction or delayed credits (SSA), down to the dollar; break-even age t solves b₁ × (t − s₁) = b₂ × (t − s₂): t = (b₂s₂ − b₁s₁) ÷ (b₂ − b₁).",
  "assumptions": [
    "Both claims use the same PIA in today’s dollars; cost-of-living adjustments raise both and are left out.",
    "Payments are counted in whole months from the claiming birthday; interest, investment returns and taxes are not included.",
    "Delayed retirement credits of 8% a year (born 1943 or later); a January 1 birthday counts as the year before.",
    "Spousal and survivor benefits, which can change the best age for a married couple, are not included."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "born": {
        "title": "Year of birth",
        "description": "The year you were born (use the year before if you were born on 1 January), 1943 or later.",
        "type": "string",
        "enum": [
          "1943",
          "1944",
          "1945",
          "1946",
          "1947",
          "1948",
          "1949",
          "1950",
          "1951",
          "1952",
          "1953",
          "1954",
          "1955",
          "1956",
          "1957",
          "1958",
          "1959",
          "1960",
          "1961",
          "1962",
          "1963",
          "1964",
          "1965",
          "1966",
          "1967",
          "1968",
          "1969",
          "1970",
          "1971",
          "1972",
          "1973",
          "1974",
          "1975",
          "1976",
          "1977",
          "1978",
          "1979",
          "1980",
          "1981",
          "1982",
          "1983",
          "1984",
          "1985",
          "1986",
          "1987",
          "1988",
          "1989",
          "1990",
          "1991",
          "1992",
          "1993",
          "1994",
          "1995",
          "1996",
          "1997",
          "1998",
          "1999",
          "2000",
          "2001",
          "2002",
          "2003",
          "2004",
          "2005",
          "2006",
          "2007",
          "2008",
          "2009",
          "2010"
        ]
      },
      "pia": {
        "title": "Benefit at full retirement age",
        "description": "Your primary insurance amount (PIA): the monthly benefit at full retirement age, from your SSA statement.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1,
        "maximum": 100000
      },
      "early": {
        "title": "Earlier claiming age",
        "description": "The first claiming age to compare, in whole years from 62 to 70.",
        "type": "integer",
        "minimum": 62,
        "maximum": 70
      },
      "late": {
        "title": "Later claiming age",
        "description": "The second, later claiming age to compare, in whole years from 62 to 70.",
        "type": "integer",
        "minimum": 62,
        "maximum": 70
      }
    }
  },
  "outputs": {
    "breakEven": {
      "label": "Break-even age",
      "description": "The age at which the later claim’s total payments equal the earlier claim’s.",
      "format": "text"
    },
    "breakEvenYears": {
      "label": "Break-even age in years",
      "description": "The break-even age as a decimal number of years.",
      "format": "number"
    },
    "earlyBenefit": {
      "label": "Monthly benefit, earlier claim",
      "description": "The PIA reduced or raised for the earlier age, down to the dollar.",
      "format": "money"
    },
    "lateBenefit": {
      "label": "Monthly benefit, later claim",
      "description": "The PIA reduced or raised for the later age, down to the dollar.",
      "format": "money"
    },
    "headStart": {
      "label": "Paid before the later claim starts",
      "description": "What the earlier claim pays before the later claim’s first payment.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "born": "1964",
      "pia": 2000,
      "early": 62,
      "late": 70
    },
    "outputs": {
      "breakEven": "80 years and 5 months",
      "breakEvenYears": 80.37037037037037,
      "earlyBenefit": 1400,
      "lateBenefit": 2480,
      "headStart": 134400
    },
    "text": "Claiming at 70 instead of 62 pays $2,480.00 a month instead of $1,400.00; the totals are equal at 80 years and 5 months."
  },
  "examples": [
    {
      "given": {
        "born": "1960",
        "pia": 1000,
        "early": 62,
        "late": 70
      },
      "expect": {
        "earlyBenefit": 700,
        "lateBenefit": 1240,
        "breakEven": "80 years and 5 months",
        "breakEvenYears": 80.37037037037037
      },
      "source": "SSA early retirement table ($700 at 62) and delayed credits ($1,240 at 70) for a $1,000 PIA, born 1960; hand calculation in content.mdx: (1,240 × 840 − 700 × 744) ÷ 540 = 964.44 months"
    },
    {
      "given": {
        "born": "1960",
        "pia": 2000,
        "early": 62,
        "late": 67
      },
      "expect": {
        "earlyBenefit": 1400,
        "lateBenefit": 2000,
        "headStart": 84000,
        "breakEvenYears": 78.66666666666667
      },
      "source": "hand calculation in content.mdx: (2,000 × 804 − 1,400 × 744) ÷ 600 = 944 months = 78 years 8 months"
    },
    {
      "given": {
        "born": "1955",
        "pia": 1500,
        "early": 66,
        "late": 70
      },
      "expect": {
        "earlyBenefit": 1483,
        "lateBenefit": 1960,
        "breakEven": "82 years and 6 months",
        "breakEvenYears": 82.43605870020964
      },
      "source": "SSA: born 1955, full retirement age 66 and 2 months; hand calculation in content.mdx: 1,500 × (1 − 2 × 5/900) = 1,483.33 and 1,500 × (1 + 46 × 2/300) = 1,960; (1,960 × 840 − 1,483 × 792) ÷ 477 = 989.23 months"
    }
  ],
  "sources": [
    "Social Security Administration, Benefit Reduction for Early Retirement: https://www.ssa.gov/oact/quickcalc/earlyretire.html",
    "Social Security Administration, Delayed Retirement Credits: https://www.ssa.gov/benefits/retirement/planner/delayret.html"
  ],
  "related": [
    "social-security",
    "social-security-tax",
    "cola"
  ],
  "changelog": []
}