In short
Full retirement age is 67 for anyone born in 1960 or later. Claiming at 62 pays 70% of your full benefit for life; waiting to 70 pays 124% — 77% more per month. On a $2,400 full benefit that is $1,680 versus $2,976, and the nominal break-even is about age 80 and 4 months. Up to 85% of benefits become taxable once provisional income passes $34,000 (single) or $44,000 (joint).
You can start Social Security retirement benefits in any month between 62 and 70, and the age you pick changes your check for life. This guide explains full retirement age, exactly how much is taken off for claiming early and added for waiting, what the earnings test does if you keep working, how benefits are taxed, and how to find your break-even age. By the end you will be able to take the figure from your Social Security statement and work out the benefit at any claiming age.
Open the Social Security claiming age calculator →
Full retirement age and the primary insurance amount
Your primary insurance amount (PIA) is the monthly benefit you receive if you claim at full retirement age (FRA), which is 67 for anyone born in 1960 or later. It comes from your highest 35 years of earnings, indexed to wage growth. The 2026 formula pays 90% of the first $1,286 of average indexed monthly earnings, 32% between $1,286 and $7,749, and 15% above that; $75,000 a year over 35 years gives a PIA of about $2,745. Fewer than 35 years means zeros in the average. The Social Security benefit calculator estimates your PIA from average earnings; your official figure is on your statement at ssa.gov/myaccount.
Claiming early: the reduction at 62
Claiming before FRA permanently reduces the benefit by a fixed amount per month of early claiming:
- 5/9 of 1% per month for the first 36 months before FRA (6.67% a year), and
- 5/12 of 1% per month for any months beyond 36 (5% a year).
With an FRA of 67, claiming at 62 is 60 months early: 36 × 5/9% = 20%, plus 24 × 5/12% = 10%, a 30% reduction. You receive 70% of your PIA for life, and every cost-of-living adjustment (COLA) is applied to that smaller base.
Delaying past FRA: credits to 70
For each month you wait beyond FRA you earn a delayed retirement credit of 2/3 of 1%, or 8% a year. The credits stop at 70, so there is never a reason to wait longer. Three years of delay from 67 to 70 is 36 × 2/3% = 24% more than the PIA. The credit is simple, not compounding, but COLAs are applied to the larger amount each year.
| Claiming age (FRA 67) | Adjustment | % of PIA | On a $2,400 PIA |
|---|---|---|---|
| 62 | −30% (60 months early) | 70.0% | $1,680 |
| 63 | −25% (48 months) | 75.0% | $1,800 |
| 64 | −20% (36 months) | 80.0% | $1,920 |
| 65 | −13.3% (24 months) | 86.7% | $2,080 |
| 66 | −6.7% (12 months) | 93.3% | $2,240 |
| 67 | Full retirement age | 100% | $2,400 |
| 68 | +8% | 108% | $2,592 |
| 69 | +16% | 116% | $2,784 |
| 70 | +24% | 124% | $2,976 |
The spread from 62 to 70 is 124 ÷ 70 = 1.77, so the age-70 check is 77% larger than the age-62 check for the same earnings record. The reduction and credit factors are statutory and the same every year; only the dollar amounts change with your record and COLAs.
The earnings test if you keep working
If you claim before FRA and still work, SSA withholds $1 of benefits for every $2 you earn above an annual exempt amount. The withheld months are not lost: at FRA your benefit is recalculated as if you had claimed later, so the reduction shrinks to reflect only the months actually paid. From the month you reach FRA the test ends. Claiming at 62 while earning a full salary therefore rarely makes sense — much of the benefit is withheld, and what is paid is paid at the reduced rate.
How benefits are taxed
Part of your Social Security may be included in taxable income. The test uses provisional income: adjusted gross income excluding benefits, plus tax-exempt interest, plus half of your benefits.
| Provisional income | Single / head of household | Married filing jointly | Taxable share of benefits |
|---|---|---|---|
| Below the first threshold | under $25,000 | under $32,000 | 0% |
| Between the thresholds | $25,000 – $34,000 | $32,000 – $44,000 | up to 50% |
| Above the second threshold | over $34,000 | over $44,000 | up to 85% |
These thresholds have never been indexed, so inflation pushes more retirees into the taxable tiers every year; for married filing separately they are zero. A single 67-year-old with $30,000 of benefits and $40,000 of IRA withdrawals has provisional income of $40,000 + $15,000 = $55,000, which makes $22,350 (74.5%) of the benefits taxable. In the phase-in range each extra dollar of IRA withdrawal drags up to 85 cents of benefits into income too, so the effective marginal rate can exceed 40% even in the 22% bracket. For 2025–2028 a $6,000 senior deduction per person aged 65 or older, phasing out at 6% of MAGI above $75,000 (single) or $150,000 (joint), offsets much of this tax for moderate incomes. The Social Security tax calculator works through the tiers and the deduction.
Worked example: $2,400 PIA, claim at 62 or 70
Claim at 62: $2,400 × 70% = $1,680 a month. Claim at 70: $2,400 × 124% = $2,976 a month — 77% more.
Nominal break-even. By age 70 the early claimer has collected 96 months × $1,680 = $161,280. From 70 the late claimer receives $2,976 − $1,680 = $1,296 more each month, so the head start is recovered after $161,280 ÷ $1,296 = 124.4 months, about 10 years 4 months — age 80 and 4 months with no COLA. The calculator, applying a 2.5% COLA from the first claim, puts it at 80 years 5 months; crediting a 2% real return on the early benefits pushes the discounted break-even to about 82 years 9 months.
Lifetime totals to 85 with 2.5% COLA: about $463,700 claiming at 62 versus $535,700 claiming at 70 — roughly $72,000 more for waiting. The surviving spouse’s benefit would be $2,976 rather than $1,680.
Comparing 62 with 67: the head start is 60 × $1,680 = $100,800, recovered at $720 a month in 140 months — about age 78 and 8 months.
How to choose
Break-even is only part of the decision. Life expectancy at 65 is in the mid-80s and higher for healthy, higher-income people, which is why planners usually favor delay for at least the higher earner in a couple: the larger benefit becomes the survivor benefit for whichever spouse lives longer. Reasons to claim early are poor health, no other income to bridge the gap, or being the lower earner whose benefit will later be replaced by a spousal or survivor benefit. Reasons to delay are family longevity, still working before FRA, the guaranteed 8% a year and protecting the survivor. Delay also leaves room for Roth conversions in the low-income years before benefits start; see the Roth conversion calculator.
What people get wrong
- Assuming the 8% credit compounds. It is 2/3% per month on the PIA — simple interest — though COLAs do apply to the larger base.
- Waiting past 70. Credits stop at 70; every month after that is money forgone.
- Treating the earnings test as a permanent loss. Withheld months are credited back at FRA through a recalculation.
- Thinking 85% of benefits is taxed at 85%. Up to 85% of the benefit is included in income, then taxed at your ordinary bracket.
- Claiming early as the higher earner in a couple. The survivor inherits the reduced check.
- Reading the break-even as the whole answer. It ignores survivor benefits, taxes and the value of guaranteed inflation-linked income late in life.
Frequently asked questions
What is full retirement age in 2026?
67 for anyone born in 1960 or later. Claiming at 62 pays 70% of the full benefit; waiting to 70 pays 124%.
How much is Social Security reduced at 62?
By 30% with an FRA of 67: 5/9 of 1% for each of the first 36 months early and 5/12 of 1% for each of the remaining 24 months. A $2,400 full benefit becomes $1,680.
What is the break-even age between 62 and 70?
About 80 and 4 months in nominal terms, or around 82 to 83 once a modest real return on the early benefits is counted. Between 62 and 67 it is about 78 to 79.
Can I work and collect Social Security at 62?
Yes, but before full retirement age $1 is withheld for every $2 earned above the annual exempt amount. The withheld months are credited back at FRA, and the test ends once you reach FRA.
How much of my Social Security is taxable?
None if provisional income is under $25,000 (single) or $32,000 (joint); up to 50% between those figures and $34,000 / $44,000; up to 85% above that. The 2026 $6,000 senior deduction for people 65 and over reduces the resulting tax for many retirees.
Sources
- SSA — PIA formula bend points; SSA — retirement age and delayed retirement credits; IRC §86 — 2026 bend points ($1,286 / $7,749), reduction and credit factors, FRA 67 and benefit-taxation thresholds, checked 8 October 2026.
- IRS — One Big Beautiful Bill Act: tax deductions for working Americans and seniors — $6,000 senior deduction and $75,000 / $150,000 phase-out, checked 8 October 2026.
- IRS — Tax year 2026 inflation adjustments (IR-2025-103) — standard deduction and age-65 addition used in the taxation example, checked 8 October 2026.