At what age should I claim Social Security?

Claiming at 62 permanently reduces your benefit by ~30% vs. full retirement age (67 for those born 1960+). Waiting until 70 increases it by 8%/year = 24% more than FRA. Break-even: claiming at 67 vs. 62 — you break even at roughly age 78–80. If you expect to live past 80 and can afford to wait, delaying is usually best.

How is Social Security benefit calculated?

SSA averages your highest 35 years of indexed earnings (AIME). Then applies bend points: 90% of first $1,226/month AIME, 32% of next $6,165, 15% above $7,391. This gives your PIA (Primary Insurance Amount) — your benefit at full retirement age. COLA adjustments increase it annually.