When should you start drawing Social Security? Here’s what the numbers say

Claiming benefits before Full Retirement Age (FRA) can reduce your monthly benefits by as much as 30%. Waiting until FRA – that’s currently 67 years for people born 1960 or later – makes you eligible for 100% of your benefits but requires delaying five years past the earliest eligibility age of 62. Delaying to FRA also removes income limitations for people who are still working.

Waiting an additional three years to age 70 comes with additional benefits. Social Security benefits increase roughly 8% each year you delay past full retirement age to age 70.

Social Security provides an easy calculator to determine your FRA but there are multiple factors that go into when you should start drawing benefits.

Yahoo Finance said there are three major considerations when determining when you should start drawing Social Security. Those factors include health and family history, how badly you need the money and whether you are still working.

Here’s how Yahoo Finance broke down the different areas:

Claiming Social Security benefits at age 62

You will receive 70% of benefits, so roughly $1,400 of the average monthly payment of $2,000. You should consider drawing at this age if you have health problems, the income is needed to survive, or claiming would help you avoid selling assets or tapping into savings.

Claiming Social Security benefits at age 67

You will receive 100% of benefits, or the full $2,000 of an average $2,000 monthly payment. You should consider drawing at FRA if you don’t want a reduced benefit but don’t want miss out on three years of payments by waiting longer. It’s also recommended to wait to age 67 if you’re still working and don’t want any benefits to be withheld.

Claiming Social Security benefits at age 70

Waiting three years past FRA earns you extra benefits of roughly 124% of your full benefits. That translates into $2,480 a month on an average $2,000 benefit. You should wait to age 70 to begin drawing benefits if you’re in excellent health and have a family history of longevity, you will rely on Social Security for a substantial part of your retirement income and you can afford to wait.

Only 8% of men and 8.6% of women wait until age 70 to start benefits, according to the report.

What is the break-even age?

The Social Security break-even age is the time at which the dollar value of claiming benefits later surpasses the value of taking them early. AARP has calculated break-even ages that factor in benefits differences based on age. You can see that here.