Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm looking at my Social Security Statement and under Your Estimated Benefits it states "At your current earnings rate, if you continue working until...". I don't plan to keep working until I'm 62. I'll have more than 35 years of wages by the time I stop working at 55 (that's the goal). Since the SS statement estimates my benefit based on me working another 7 years, how do i calculate my estimated benefit?
I'll have more than 35 years of wages by the time I stop working at 55 (that's the goal). Since the SS statement estimates my benefit based on me working another 7 years, how do i calculate my estimated benefit?
You would have to plug in zero wages for the years from 56 to 62. That will lower your average earnings and lower your ultimate benefit.
I hope you have other sources of income for those years.
Contact Social Security online or by phone and ask. They keep running totals of the time and amount everyone has paid into Social Security, along with the estimated benefit starting with age 62.
Although I didn't 'need' to take early SS, I calculated the break even point for taking SS at 62, versus waiting until 67, was about 14-years (OR, at about 76, I would start actually making more by delaying SS another 5-years).
You would have to plug in zero wages for the years from 56 to 62. That will lower your average earnings and lower your ultimate benefit.
SS security is based on a 35 year average. Zero wages are only added in if you have fewer than 35 years of wages. My current estimated benefits are calculated based on higher earning years replacing lower earning years.
Quote:
Originally Posted by goldenage1
I hope you have other sources of income for those years.
Contact Social Security online or by phone and ask. They keep running totals of the time and amount everyone has paid into Social Security, along with the estimated benefit starting with age 62.
Although I didn't 'need' to take early SS, I calculated the break even point for taking SS at 62, versus waiting until 67, was about 14-years (OR, at about 76, I would start actually making more by delaying SS another 5-years).
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.
Yep as I understand it its that you will have first of those 35 years in calculation which normally are at lessor wage. But just now much it effects your benefit is questionable and varied.
For most people the later years are at higher wages, even adjusted for inflation. If that is the case for the OP, then stopping work at 55 would result in somewhat lower SS benefits at 62, even with the 35 years already in.
I assume the OP already knows that and wants to know how to calculate his benefits more precisely. (I do not know the answer to that).
I remember a while back another poster was outraged that once he had his 35 years under his belt, additional years at wages about the same as his existing 35-year average would not increase his benefits. His point was that the additional FICA taxes he would be paying beyond the 35th year were "wasted" because he wouldn't derive any personal benefit from them. I understood his point, although I did not quite understand his degree of outrage. The system is pretty fair overall, especially if it is understood as insurance, which is what it is. How about the retiree who starts his benefits, collects one month's payment, then dies without having a spouse or dependent minor children? That seems unfair too until we remind ourselves that SS is insurance.
SS security is based on a 35 year average. Zero wages are only added in if you have fewer than 35 years of wages. My current estimated benefits are calculated based on higher earning years replacing lower earning years.
That's correct. If you have 35 years with wages, you can plug in the zeroes for the upcoming years and get a decent estimate, without worries about it showing reduced benefits. I retired a couple of years ago at 63, have >35 years SS wages, and don't plan to file for SS for several more years. I use the calculator, input zeroes for non-earning years, and re-run the numbers every year or so. I get consistent results, it even picks up any tiny COLA's.
Quote:
Originally Posted by djplourd
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.
They used to have a calculator that worked if you were younger than 62; I know because I started using it about age 59. You had to input numbers for future years earnings and like I said, I used zeroes. I know they continually update the website so it's possible they've changed the calculators since then.
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.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
