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 IRAIndividual Retirement Account (IRA)A personal retirement savings account with tax advantages. Two main types: Traditional (tax now, pay later) and Roth (pay now, tax-free forever).Full definition cost of bridging the gap.
US-only. Social Security mechanics are US-specific.
Worked example: FRAFull Retirement Age (FRA)The age at which you qualify for your full Social Security benefit, currently 67 for anyone born after 1960. 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.
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 creditdelayed retirement creditThe increase in Social Security benefits for delaying claiming past full retirement age. For people born 1943 or later, benefits grow approximately 8% per year between FRA and age 70. The increased benefit lasts for life. 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 (COLAsCost-of-Living Adjustment (COLA)An automatic raise to Social Security or pension payments each year, sized to match how much prices have gone up.), 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 fiduciaryfiduciaryA person legally required to act in your best financial interest. Fee-only financial advisors are fiduciaries; commission-based advisors may not be.Full definition 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.