I Asked ChatGPT If Delaying Social Security Still Pays Off — Here's What Changed
Is it ever better to take Social Security as early as possible — especially with funds in danger of reduction?
MoneyLion recently asked ChatGPT if retirees who are considering waiting on collecting Social Security are in an advantageous position, taking into account life circumstances, additional retirement savings and several other factors. The chatbot's response on what’s changed for retirees delaying Social Security in 2026 and how ChatGPT might help:
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Should Retirees Wait To Claim Social Security?
ChatGPT simplified the answer to this question with: “Yes.”
For many retirees it said that “Delaying Social Security beyond 65 can materially increase lifetime monthly income, but whether it makes sense depends heavily on health/longevity, cash needs, taxes, marital status, and what other retirement assets are available.”
Benefits of Delaying Social Security
The AI found that the longer retirees wait to collect their benefits, the bigger the payoff. As an example, ChatGPT modeled how delaying Social Security at 65 and waiting until 70 to take it translates realistically into much bigger benefits: you get approximately $156,000 over those five years — that's before considering COLAs — in exchange for roughly $1,120/month more for life thereafter. That produces a rough simple break-even around age 81-82 for 65 versus 70.
The difference is significant, but it shouldn't be treated as a prediction of whether someone will personally “come out ahead,” according to the LLM, since “taxes, investment returns, mortality, Medicare premiums, marital status and survivor benefits can materially change the calculation.”
Working Beyond 65 Alters the Claim Recommendation
According to ChatGPT, if you're still working at age 65 and continuing to do so for years after, the calculated benefits of waiting to collect Social Security change.
“In 2026, before reaching full retirement age (FRA), Social Security's earnings-test limit is $24,480,” ChatGPT said. “Above that amount, $1 of benefits is withheld for every $2 of excess earnings. In the year you reach FRA, a higher $65,160 limit applies to earnings before the month you reach FRA; after FRA, there is no earnings test.”
The chatbot said that anyone working past the normal age of retirement could potentially increase their eventual benefit if the additional earnings replaced lower-income years in that worker’s Social Security top-earning years record.
Consider Taxes in Choosing When to Claim Social Security
One factor that ChatGPT made note of when delaying taking Social Security was taxes. “Someone delaying Social Security from 65-70 might use IRA/401(k) withdrawals during those years,” ChatGPT wrote, adding that “those withdrawals can themselves increase taxable income.”
The AI recommended coming up with a financial retirement strategy to align benefit payments with ROTH conversions, IRA and taxable account withdrawals, capital gains, and Medicare premiums rather than solely relying on Social Security by itself.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice. It was created with the assistance of artificial intelligence and reviewed by our editorial team for accuracy. However, AI-generated content may be inaccurate, incomplete or outdated. You should independently verify important information through reliable sources before making any decisions based on this content.
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