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Old 05-05-2014, 05:44 PM
 
Location: Houston, TX
2,052 posts, read 4,583,255 times
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That's a nice online calculator and I like the numbers if SS is still around when I can retire at 66 in 17 years. I'll get more from SS and my work pension than what I'm currently taking home.
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Old 05-06-2014, 09:54 PM
 
Location: NYC
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So if I stop working at 62 & start drawing from my IRA does that show up as my income for those years if I claim SS at 66?

Last edited by Hefe; 05-06-2014 at 10:27 PM..
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Old 05-07-2014, 12:19 AM
 
Location: Los Angeles area
14,018 posts, read 17,726,438 times
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Quote:
Originally Posted by Hefe View Post
So if I stop working at 62 & start drawing from my IRA does that show up as my income for those years if I claim SS at 66?
No. They count earned income (wages and salaries) on which you pay FICA taxes.
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Old 05-07-2014, 01:35 AM
 
Location: Northern VA
511 posts, read 631,117 times
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Quote:
Originally Posted by ABQ2015 View Post
This Social Security online calculator allows you to calculate benefits at age 62 if you stop working earlier than age 62:

Calculators: Online Calculator

Unfortunately you have to enter your wages for each year from your Social Security statement - the calculator is not linked to your Social Security log in account. You enter the age at which you plan to stop working and if that age is less than 62, the calculator will provide you the monthly benefit starting at age 62. You also have to enter your expected earnings in 2014 and in 2015. The calculator assumes that your 2015 earnings will remain the same in future years until you stop working. The calculator accepts "zero" as an input. I have used it to evaluate future benefits based on retiring in 2015, 2016, 2017, working part time starting in 2015, etc.

There is a very detailed calculator that you can download on your computer but I have never been able to figure out how to enter the data. Also you can do hand calculations but it is tedious.
I wound up downloading the detailed calculator and after working with it for awhile I think I got it to work. It gave me the numbers to look at anyway.

Stop Work Age 55 62
Benefits at 62 $1,550.00 $1,682.00
Benefits at 67 $2,407.00 $2,611.00
Benefits at 70 $3,149.00 $3,416.00

I also calculated my break-even points. It's roughly 10 years for taking benefits at 67 versus 62, 12 years for taking it at 70 versus 62, and 14 years for taking it at 70 versus 67.

Of course I had to make numerous assumptions and I realize that SS will almost certainly change before I start receiving benefits, but even so this was a useful exercise.

Financially it makes more sense to keep working at least until age 62. 7 additional years of full time earnings is a powerful argument. In the end its going to be a tough decision based on our health and financial situation at the time.
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Old 05-07-2014, 03:01 AM
 
71,490 posts, read 71,652,652 times
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older earnings are inflation adjusted so it is possible you may have earned more money 20 years ago in adjusted wages so continuing to work longer may not mean years of higher wages counting .
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Old 05-07-2014, 08:12 AM
 
Location: Albuquerque NM
1,656 posts, read 1,521,661 times
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Quote:
Originally Posted by djplourd View Post
I wound up downloading the detailed calculator and after working with it for awhile I think I got it to work. It gave me the numbers to look at anyway.

Stop Work Age 55 62
Benefits at 62 $1,550.00 $1,682.00
Benefits at 67 $2,407.00 $2,611.00
Benefits at 70 $3,149.00 $3,416.00

I also calculated my break-even points. It's roughly 10 years for taking benefits at 67 versus 62, 12 years for taking it at 70 versus 62, and 14 years for taking it at 70 versus 67.

Of course I had to make numerous assumptions and I realize that SS will almost certainly change before I start receiving benefits, but even so this was a useful exercise.

Financially it makes more sense to keep working at least until age 62. 7 additional years of full time earnings is a powerful argument. In the end its going to be a tough decision based on our health and financial situation at the time.
I'm 58 and planning to stop working at age 59. My results were similar in that I lose about $80 a month if I take SS at age 62. I have a couple of lower wage years where I worked part time in college but most of my 35 years that count towards SS are at a higher wage. To me it is not worth it to work 3 more years to get an extra $1000 a year. Since I'm single, I have not seen any advantage to delaying SS beyond 62 as I don't have to provide for a surviving spouse and my pension and savings are sufficient to support my desired retirement lifestyle. And retirement calculators have confirmed that there is no advantage to my delaying SS. I'm glad that you found the exercise to be useful. In my case it helped me decide that retiring early is financially feasible.
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Old 05-07-2014, 08:13 AM
 
Location: Los Angeles area
14,018 posts, read 17,726,438 times
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Quote:
Originally Posted by djplourd View Post
........

Financially it makes more sense to keep working at least until age 62. 7 additional years of full time earnings is a powerful argument. In the end its going to be a tough decision based on our health and financial situation at the time.
Quote:
Originally Posted by mathjak107 View Post
older earnings are inflation adjusted so it is possible you may have earned more money 20 years ago in adjusted wages so continuing to work longer may not mean years of higher wages counting .
Mathjak, your statement is obviously correct, but I think the OP is making a very different point in the paragraph which I quoted. Although the main point of the original post was how to calculate SS benefits under the assumption of not working after age 55, an important secondary point is the effect of those seven years of missed income while spending from savings. That is a huge effect, quite apart from any issue of how to calculate one's SS. OP, please correct me if I am misinterpreting.
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Old 05-07-2014, 12:06 PM
 
Location: Northern VA
511 posts, read 631,117 times
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Quote:
Originally Posted by Escort Rider View Post
Mathjak, your statement is obviously correct, but I think the OP is making a very different point in the paragraph which I quoted. Although the main point of the original post was how to calculate SS benefits under the assumption of not working after age 55, an important secondary point is the effect of those seven years of missed income while spending from savings. That is a huge effect, quite apart from any issue of how to calculate one's SS. OP, please correct me if I am misinterpreting.
I've got between 5 and 12 years to keep working so many of my lower earning years will be replaced by max years. I'm curious to find out next year how much that affects the results.

I have my military retirement so I don't have to worry too much about spending from savings. I think I could stop working at 55 and still make it. However, I know I'd be a lot more comfortable if I kept working those additional 7 years. And I haven't really explored the effect my choices will make on my spouse.
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Old 05-07-2014, 08:10 PM
 
Location: Florida
4,358 posts, read 3,692,049 times
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Quote:
Originally Posted by djplourd View Post
This doesn't answer my question. I can go to SSA.gov and get my updated estimated benefits at 62, 67, 70. If I stop working at age 55 (or any number less than 62) what will my estimated benefits be at those ages? SSA calculates the estimate based on you working until those ages.
Just to be sure, you can not receive benefits until you are at least 62.
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Old 05-07-2014, 09:07 PM
 
Location: Finally escaped The People's Republic of California
11,119 posts, read 7,565,867 times
Reputation: 6217
So for seven more years of hard labor, you'll receive an additional $132.00 a month???? I'll go at 55........
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