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Social Security Benefits by Age Calculator

Many underestimate the value of Social Security and its guaranteed income in retirement. Since benefits can start between ages 62 and 70, choosing the right time is crucial in maximizing payments.
Toberman Becker Wealth’s Social Security Benefits Calculator explores your three options:

  • Early Retirement Option | Ages 62-66
  • Full Retirement Age (FRA) Option | Ages 66-67+
  • Delayed Option | Ages 68-70

Get instant feedback, test different scenarios, and simplify your retirement options to make informed retirement decisions with our easy-to-use calculator.

Explanation of Terms

  • Estimated Benefit at Full Retirement Age (FRA) 
    This is the Social Security Administration estimate based on your current earnings if you start benefits at full retirement age. 
  • Number of Years to Delay Filing
    We rarely recommend starting Social Security before your Full Retirement Age (FRA) unless you have no other income. This calculator helps you compare the benefits of delaying Social Security by 1, 2, and 3 years.
  • Social Security Annual COLA Adjustment
    Each year, Social Security benefits are adjusted for the cost of living. Since 1975, benefits have never gone down, but there have been years with no increase. How much your benefits increase because of this adjustment is important when deciding whether to delay starting Social Security.
  • Savings Growth Rate
    Delaying Social Security means missing out on payments you could have received earlier. This could cost you potential growth, whether you might have invested that money or used other assets to cover expenses.
  • Delayed Monthly Benefit
    For each year you delay Social Security, your benefits increase by a simple 8% of your FRA benefit. This estimate shows how much your monthly payments will be, based on how long you decide to delay. 
  • Break-Even Age
    This is the age when the extra benefits from delaying Social Security become greater than if you had started at your Full Retirement Age (FRA).
  • Forgone Earnings Upon Filing
    This estimates how much you could earn if you start Social Security at your Full Age of Retirement (FRA) instead of waiting, based on the savings growth you choose.

Social Security Benefit FAQ

A: Social Security is a U.S. government retirement benefit funded by FICA (Federal Insurance Contributions Act) payroll deductions. About 15% of your income is contributed, with half covered by your employer, to provide financial support during retirement.
Your benefits are based on the contributions made during your working years, calculated from your highest 35 earning years. Contributions and benefits are capped at an income of $168,600, commonly known as ‘maxing out’ Social Security.

A: The age at which you choose to start collecting Social Security significantly impacts your benefit amount. While full retirement age (FRA) is typically 67, you can begin receiving benefits as early as 62 or delay them until 70. To encourage delaying, the government increases your payments each year you wait until age 70.

  • Early Retirement Option | Ages 62-66
    Starting Social Security at age 62 results in a permanent 25-30% benefit reduction. For example, claiming a $3,000 monthly benefit early could cost you $900 a month, leading to a total loss of up to $324,000 over a 30-year retirement.
  • Full Retirement Age (FRA) Option | Ages 66-67+
    Retirees can receive full benefits at age 66 or 67, depending on their birth year. Waiting until Full Retirement Age (FRA) allows them to earn extra income without reducing their benefits.
  • Delayed Option | Ages 68-70
    Delaying Social Security benefits between ages 67 and 70 boosts payouts by about 7-8% annually. By age 70, retirees receive around 130% of their full benefit, locked in for life, often outpacing other investments.
A: The best time to collect Social Security depends on your situation. Key factors to consider include:
  • Are you still working or planning to work beyond full retirement age?
  • Do you have other income sources or assets to cover your expenses until you begin collecting?
  • Do you have any serious health concerns that may affect your decision?
  • What is your life expectancy, and will your savings last throughout retirement?
A: This calculator offers options based on your unique variables and shows how delaying Social Security could affect your retirement. While it provides a basic estimate, many variables unique to each situation can alter the outcome. A full analysis will include cash flow projections, Monte Carlo simulations on projected portfolio returns, spousal benefits, and several other factors. Working with a qualified Financial Professional can take these calculator estimates to the finish line.

How can a financial advisor help me determine the best time to use my Social Security?

Qualified Financial Professionals will use cash flow projections, simulate various market return environments, and project the impact of taxes in arriving at a recommendation for beginning Social Security benefits. Navigating the complexities of your assets and Social Security options alone can be daunting. A trusted financial advisor streamlines the process, eases the stress, and boosts your confidence in finding the best strategy tailored to you and your family.

About Us

Toberman Becker Wealth is a fee-only, independent fiduciary firm based out of St. Louis. Whether starting to dream about retirement in your 50s or actively planning for retirement in your 60s, we can help you formulate a resilient retirement plan. We always operate in the best interests of our clients, and our top priority is to help you live comfortably now and in the future with a substantial savings strategy.

If you’re looking for an investment advisor to help you build a diversified retirement plan that ensures comfort and peace of mind, please book a meeting or give us a call.

Disclosure: The Retirement Savings Calculator is for illustrative purposes only and is not intended to be indicative of future results. The projections or other information generated by the Retirement Savings Calculator are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Actual performance and returns may be higher or lower than those depicted. The information provided herein does not undertake to explain the risks associated with any investment. Before taking any investment action, you should first consult with a qualified professional.

Michael is a highly knowledgeable and experienced partner at Toberman Becker in St. Louis. With his expertise in investment management, behavioral finance, and retirement planning, Michael is dedicated to providing his clients with the best financial guidance possible.

Having worked with clients on complex estate planning and developing investment strategies for a team of advisors, Michael’s experience spans across various areas of financial planning. What truly sets him apart is his unyielding desire to acquire knowledge for the betterment of his clients. At Toberman Becker, this commitment to continuous learning is the foundation upon which exceptional client experiences are built.

Michael earned a Bachelor of Science degree in Finance and Banking from the University of Missouri – Columbia. Additionally, he holds designations as a Chartered Financial Analyst (CFA) charterholder and Certified Financial Planner (CFP).

Beyond his professional achievements, Michael enjoys a fulfilling personal life in St. Louis. Living with his wife, Lindsey, and their beloved dog, Birk, he finds joy in activities such as golfing together and exploring local restaurants.