How your benefit is calculated, the breakeven analysis for claiming at 62 vs 67 vs 70, and strategies for married couples.
Your benefit is based on your 35 highest-earning years (adjusted for inflation). The Social Security Administration averages these into your AIME (Average Indexed Monthly Earnings), then applies a progressive formula to calculate your PIA (Primary Insurance Amount) — the benefit you'd receive at your Full Retirement Age (FRA).
For anyone born in 1960 or later, Full Retirement Age is 67.
If you have fewer than 35 years of work history, Social Security fills the missing years with zeros — which lowers your average and reduces your benefit. Working a few more years near retirement can meaningfully increase your PIA. Check your earnings record at ssa.gov/myaccount.
You can claim Social Security as early as 62 or as late as 70. Every year you delay past your FRA, your benefit grows 8% permanently. Every year you claim before FRA, it's reduced.
The example above uses a $2,000/month FRA benefit. Claiming at 62 gives you $1,400/month — 30% less, permanently. Delaying to 70 gives you $2,480/month — 24% more than FRA, for the rest of your life.
If you claim at 62 instead of 70, you get 8 more years of payments before the 70-claimer starts — but smaller ones. The breakeven age (when the 70-claimer's cumulative benefits surpass the 62-claimer's) is roughly age 80–82.
| Age | Claim at 62 (cumulative) | Claim at 70 (cumulative) | Advantage |
|---|---|---|---|
| 70 (start) | $134,400 | $0 | 62-claimer ahead by $134,400 |
| 80 | $302,400 | $297,600 | 62-claimer barely ahead by $4,800 |
| 82 | ~$336,000 | ~$357,000 | 70-claimer takes the lead |
| 90 | ~$470,000 | ~$595,000 | 70-claimer ahead by $125,000 |
A spouse who earns less (or didn't work) can claim up to 50% of the higher-earning spouse's benefit. The SSA automatically pays whichever is higher — your own earned benefit or 50% of your spouse's FRA benefit.
The wife takes the spousal benefit ($1,400) instead of her own ($1,200) because it's higher. Meanwhile, the husband delays to 70 to maximize his benefit — which also becomes the survivor benefit if he dies first. The surviving spouse keeps whichever benefit is larger.
Common married couple strategy: the lower earner claims early (for immediate income), while the higher earner delays to 70 (to maximize the survivor benefit). This is especially important because women statistically outlive men and will often depend on the survivor benefit for many years.
What is the maximum monthly Social Security benefit increase you gain by delaying from your Full Retirement Age (67) to age 70?
You are in poor health at age 62 and need income now. Claiming Social Security at 62 (vs waiting until 70) is:
A non-working spouse is eligible for Social Security benefits based on: