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Art53: There is a thing called "the break even point." I think it's around age 84 years of age?

The break even point is a bogus metric as it is based on your PIA instead of your monthly benefit. It does not take into consideration how COLA is applied to the PIA. As Social Security deems that you earn COLA from the age of 62, it has a tremendous impact on your monthly benefit when you delay your claim.

A couple of years ago, I found a Social Security statement from 2007 when I turned 62. I retired in 2013 at age 68 and claimed my retirement benefit starting the month after I retired. My monthly benefit was much higher than I expected and nearly identical to what Social Security statements projected that I would receive at age 70. I hadn't realized that all COLA earned from age 62 was applied to the PIA calculated when you claimed your benefit.

Out of curiosity, I decided to calculate my break even point. I used my 2007 PIA amount and applied COLA for each year from Social Security's COLA table to calculate the amount of Social Security income that I would have received each year. For future years I used 0%, 1%, and 2% for COLA and applied that to my 2007 benefit and my current benefit. The break even point varied between 76 and 78 years depending on my assumptions of future COLA.

One reason that my break even point fell was that I continued to work and have earned income. This resulted in my being categorized as a maximum wage earner for the 35 years used to calculate my PIA. I certainly wouldn't have been in that category had I not been earning income from age 62 to 68.
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