What is the "cross over" age age if you take social security at 62, assuming a 6% interest rate.?

Question

At what age does it become disavantageous

Answer 1

Generally, it is disadvantageous to take early SS if you live past 73. That is the SSA break even point.

There are some individual circumstances that will cause this to vary.

Answer 2

Forget the interest rate for now. It's almost always better to take the money at 62 than waiting. Those dollars you pass up divided by the extra monthly amount you get at age 65, 66 or later depending on the revised rules, will give you the number of months you will have to live beyond the later starting date to break even. It's usually well into the 70s up to the early 80s, and unless you have a family history of living into the 90s, why take the chance?

My father in law took it at age 62. He died one week after turning 65 and would not have seen a red cent if he'd waited. I know too many people who would've gotten screwed by waiting.