This page documents the Excel workbook used to analyze whether to claim Social Security before full retirement age (FRA) versus claiming at FRA or delaying (typically to age 70).

Download: Social Security Early-Claim Workbook (Excel)

Place the workbook file at: assets/social-security-early-claim-workbook.xlsx in your Jekyll site so the link above works.

Why this workbook exists (the rationale)

Deciding when to claim is a tradeoff between:

  • Earlier cashflow vs. a permanently reduced monthly benefit if you start before FRA.
  • Larger lifetime checks (especially if you live longer) if you delay, thanks to delayed retirement credits (up to age 70).
  • Opportunity cost: if you claim earlier, you may invest/spend those checks sooner—so a present value comparison (NPV) matters.
  • Work + earnings test timing: if you claim before FRA and keep working, the earnings test can withhold payments temporarily.
  • Household planning: spousal and survivor considerations can dominate the “best” choice for a couple.

This workbook is built to make those tradeoffs explicit and comparable in one place, using transparent formulas you can audit.

What’s inside (tabs)

  • README — quick instructions, color key, and official reference links.
  • Inputs — all editable assumptions (blue text on yellow cells).
  • Benefits — computes monthly benefit under three strategies:
    • A: Early (default 62)
    • B: FRA
    • C: Delayed (default 70)
  • Cashflows — annual benefit cashflows by age with COLA, optional simplified withholding, PV, and cumulative PV.
  • BreakEven — break-even ages using cumulative PV of net benefits.
  • Taxes — rough planning estimate of taxable benefits based on provisional income thresholds (not a tax worksheet).
  • SpouseSurvivor — quick reference calculations and reminders (high-level only).
  • Dashboard — summary view (monthly benefits, PV to life expectancy, break-even ages).

How to use it (step-by-step)

1) Fill in Inputs

Go to Inputs and update the blue/yellow cells:

  • FRA and PIA (your SSA statement values)
  • Claim ages you want to compare (A/B/C)
  • COLA and discount rate (your planning assumptions)
  • If you will work while claiming before FRA, set Working while claiming before FRA? to Yes and enter earnings + exempt amount.

2) Check your monthly benefits

Go to Benefits and confirm:

  • The early-claim reduction looks reasonable for your months early.
  • The delayed-credit assumption matches your cohort (update the delayed credit rate if needed).

3) Interpret lifetime value & NPV

Go to:

  • Cashflows for the year-by-year “money in the door,” the PV of each year’s check, and cumulative PV totals.
  • Dashboard for a quick PV-to-life-expectancy comparison.

Rule of thumb:
If one strategy has a higher Cum PV(Net) to LifeExp, it’s “better” under your discount rate and life expectancy assumption.

4) Read break-even ages

On BreakEven, you’ll see:

  • Early vs FRA: the first age where Early’s cumulative PV ≥ FRA’s cumulative PV
  • FRA vs Delayed: the first age where FRA’s cumulative PV ≥ Delayed’s cumulative PV

If the sheet shows “No BE,” it means the cross-over doesn’t happen within the modeled age range.

Modeling choices & limitations (read this)

  • Earnings test is simplified: it models withholding as a cashflow reduction before FRA, and does not model SSA’s post-FRA recomputation that can increase benefits to reflect months withheld.
  • Delayed credit rate varies by birth year: the input is editable because the correct credit depends on your cohort.
  • Tax tab is a rough estimator: it uses basic threshold logic and does not replicate the full IRS worksheet.
  • This is planning software: verify final decisions with official SSA tools and/or a qualified professional.

Official references used

  • SSA early retirement reduction formula (5/9 of 1% then 5/12 of 1%): https://www.ssa.gov/oact/quickcalc/earlyretire.html
  • SSA exempt amounts / earnings test overview: https://www.ssa.gov/oact/cola/rtea.html
  • SSA “Receiving benefits while working” (includes current-year limits): https://www.ssa.gov/benefits/retirement/planner/whileworking.html
  • SSA delayed retirement credits (increase stops at age 70): https://www.ssa.gov/benefits/retirement/planner/delayret.html
  • IRS overview of Social Security benefit taxation: https://www.irs.gov/newsroom/irs-reminds-taxpayers-their-social-security-benefits-may-be-taxable