09/23/2026
📊 What is break-even when calculating retirement? Let me explain with a simple example.
Many people ask: should I start collecting Social Security at 62 or 67? Let’s break it down with numbers.
Take two people with the same earnings history.
The first starts collecting at 62 — $1,400 per month.
By age 67, he has already received $84,000.
The second waits until 67.
Until then, he receives nothing. But starting at 67, his benefit will be $2,000 per month — that’s $600 more.
Now the question: how long does the second person need to catch up to that $84,000 the first person already received?
Answer: about 11 years and 8 months.
That means around age 78–79, the total amount received by both will be equal.
This is the break-even point — the moment when the total benefits paid to both people become the same.
✅ Before break-even, the earlier-start option wins.
✅ After break-even, the one who waited until 67 starts winning.
So if you’re in good health and expect to live a long life, the later option might work out better.
But retirement is always a personal decision. Don’t look at your neighbor — make the decision based on your own situation.
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