Social Security bridge.
Should you delay claiming to 70?
Delaying Social Security past full retirement age grows your benefit 8% per year through age 70 verify×DON'T TRUST, VERIFYClaim: Delayed retirement credits add approximately 8% per year between FRA and age 70.Verify at: SSA: Delayed Retirement Credits ↗SSA's delayed retirement credit is 8% per year for those born in 1943 or later.. This tool shows the break-even age, lifetime benefit difference, and the IRA cost of bridging the gap.
US-only. Social Security mechanics are US-specific.
Worked example: FRA 67, monthly benefit at FRA $2,400. At 70: $2,976 (24% higher). Bridging 3 years of $2,400/month from an IRA: $86,400. Break-even versus claiming at 67: roughly age 82. Living to 90 with delay-to-70 yields ~$96,000 more in lifetime benefits than claiming at FRA.
Methodology: nominal lifetime totals, no COLA. Crossover ages mark where delayed claiming pulls ahead.
How this tool works
- Benefit at 62 = FRA benefit × reduction factor. Reduction is 30% if FRA is 67, 25% if FRA is 66 (5/9 of 1% per month for first 36 months early, 5/12 of 1% per month for additional months). This tool uses approximations verify×DON'T TRUST, VERIFYClaim: SSA early-retirement reduction is 5/9 of 1% per month for the first 36 months and 5/12 of 1% per month for additional months below FRA.Verify at: SSA early retirement reduction ↗SSA publishes the exact monthly reduction percentages..
- Benefit at 70 = FRA benefit × (1 + 0.08 × years past FRA). 8% per year delayed retirement credit applies for people born 1943 or later.
- Break-even is calculated by comparing cumulative benefits between claiming at FRA and claiming at 70. Years of delayed-claim higher benefits eventually exceed the years of FRA benefits foregone during the delay.
- Bridge cost = (years from FRA to 70) × FRA monthly benefit × 12. Approximation: in practice you would also need to fund taxes on Traditional IRA withdrawals.
- Lifetime benefit calculations exclude Cost-of-Living Adjustments (COLAs), which would scale all three scenarios proportionally and not change the relative comparison.
- This tool excludes Social Security taxation impacts, spousal benefits, survivor benefits, and Medicare premium effects. For couples, the higher earner generally delays to 70 to maximize the survivor benefit. Consult a fee-only fiduciary for couples planning.
Not financial advice. Calculations exclude COLAs, taxes, and spousal/survivor effects. Average life expectancy assumptions; if family history suggests shorter or longer life, results differ.