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Social Security claiming age: a 2,000 benefit for a person born in 1964 at 62, 67 and 70, with the break-even ages

ToolSocial Security Claiming Age
SourceSocial Security Administration (2025). Federal Old-Age, Survivors and Disability Insurance (1950– ). Code of Federal Regulations, Title 20, Part 404, Sections 404.409, 404.410 and 404.313, as in effect 1 October 2025 (the rules and their printed examples); the case itself is illustrative.
LevelUndergraduate

Problem

A person born in 1964 has a Social Security retirement benefit of 2,000 a month at full retirement age. Find the full retirement age, the monthly benefit if claimed at 62 and at 70, the age at which each later claim has paid as much in total as the earlier one, and the total and present value of each choice to age 85, with a 2.5 % yearly cost-of-living increase and a 4 % discount rate.

Inputs to Enter

  • Benefit at full retirement age 2,000 a month; year of birth 1964
  • Cost-of-living increase 2.5 % a year; discount rate 4 % a year; comparison to age 85
Open the Social Security Claiming Age tool (loaded with this example)

Answers

  • Full retirement age for 1964: 67 years (20 CFR 404.409)
  • Claiming at 62, 60 months early: reduction 36 × 5/9 + 24 × 5/12 = 30 %, benefit 2,000 × 0.70 = 1,400.00 a month (20 CFR 404.410)
  • Claiming at 70, 36 months late: credit 36 × 2/3 = 24 %, benefit 2,000 × 1.24 = 2,480.00 a month (20 CFR 404.313)
  • Break-even 62 against 67 with no increases: 1,400 × 60 / (2,000 − 1,400) = 140 months after 67, age 78 years 8 months; with 2.5 % increases 76 years 9 months; discounted at 4 %, 80 years 4 months
  • Break-even 67 against 70: 82 years 6 months, 80 years 7 months and 84 years 2 months; 62 against 70: 80 years 4 months, 78 years 6 months and 82 years
  • To age 85: claim at 62 pays 513,818 in total (present value at 62 of 324,989); at 67, 607,874 (349,751); at 70, 650,206 (353,312)

Notes

The tool's default inputs are this case; press Submit. The regulation's own printed examples (a 980.50 benefit claimed 44 months early paying 751.70; a 782.60 benefit with 12 credits at 11/24 of 1 % paying 825.60) are reproduced to the cent in test_social_security_claiming_age.php, and every number of the case against an independent numpy implementation. The page describes the rules and does not say when to claim; it is an illustration, not tax, legal or benefits advice. A calculator for education and analysis, not investment advice.