Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTChristy Bieber, The Motley FoolSat, July 4, 2026 at 1:59 PM GMT+2 4 min readFor many people, the decision about when to claim Social Security is made far too casually. Some people just file as soon as they become eligible at 62, while others start benefits simply because they're retiring or they have reached their full retirement age.Rushing into starting your benefits can be a bad idea, though. You should give very careful thought to your claiming decision, as it can affect your finances for the long haul. In fact, before you even consider starting Social Security, there are two things that you need to do first.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.Run a breakeven analysisThe first thing to do before starting Social Security is to run a breakeven analysis. This analysis is a key part of your retirement planning process used to determine how long it takes you to break even if you delay a benefits claim. It's worth doing so you can decide whether to claim at a younger or older age.For example, say you're thinking about claiming Social Security at 62. However, your full retirement age is 67. It makes sense to consider how long it would take to break even if you delayed your benefit so you can make an informed claiming choice.Here's how you do it:See how much your benefits would be at each age. You can use your mySocialSecurity account to do that.Calculate the income you miss if you delay your benefit. For example, say you were on track for a $1,400 benefit at 62. If you delay until 67, you pass up five years of $1,400 monthly benefits or $84,000.Calculate the extra monthly income that you get for delaying. If you wait until 67, you'd get a $2,000 benefit instead of a $1,400 one. That's an extra $600 a month.Determine how many months it takes to break even. That's done by dividing the total income missed due to the delayed claim by the extra monthly income resulting from the delay. Since $84,000 divided by $600 is 140, it would take you 140 months to break even.If you anticipate living more than 11.6 years after turning 67, a breakeven analysis reveals that you'd end up with more lifetime income if you delay your Social Security claim. It may be worth working longer or living off your retirement plans for a while to do that.Coordinate with your spouse if you have oneThe second thing you need to do is to coordinate with your spouse if you are married. That's because your choice to claim Social Security benefits (or not to claim Social Security benefits) affects them.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info