They are also not taught that the break-even age for Social Security is around 80 years old. So, if you take your benefit at age 62 or at age 70, if you live to the break-even age of around 80, you will receive the exact same amount of money.
Here’s an example: If your Social Security benefit was $2,000 per month at age 62 you would receive $432,000 in benefits by age 80. If you defer until age 70, you would receive $3,600 per month. $3,600 per month until age 80, is $432,000 in benefits.
That $1,600 per month difference comes into play if you live longer than age 80. Many Americans do. Men who make it to age 65 now have a life expectancy of age 86. Women who make it to age 65 have a life expectancy of age 89. If a married couple makes it to age 65 there is a 50 percent chance that one of them will live until age 95.
So, if you break even at age 80 and you live past age 80, it will cost a lot of money if you didn’t defer until age 70.
Live to age 85: Lose $96,000
Live to age 90: Lose $192,000
Live to age 95: Lose $288,000
Live to age 100: Lose $384,000
The above does not include cost of living increases, so the actual losses would be more if you live past age 80.