Will my benefit go down? (social security, state, years, benefits)

[mcknight77]

I'm 64 and waiting for my full retirement age of 66 to draw my SS.

However, my work income was reduced by half a couple of months ago. I have enough income to meet expenses without drawing my SS now or taping my 401k.

My question is: Will my benefit go down from what it is projected to be at 66 because my income has now been reduced?

Jim

[katie45]

Jim, Here is a s/s document that outlines the procedure they use when calculating your retirement benefits:
http://www.ssa.gov/pubs/EN-05-10070.pdf

Hope this helps!

[mcknight77]

Originally Posted by katie45

Jim, Here is a s/s document that outlines the procedure they use when calculating your retirement benefits:
http://www.ssa.gov/pubs/EN-05-10070.pdf

Hope this helps!

Thanks Katie!

It appears from reading it that they use the highest 35 years to calculate. If that is correct, then it appears my benefit should remain the same.

[mathjak107]

not quite the same.

it takes the highest 35 inflation adjusted years but it also assumes you will be paying in to the system until the age you are projecting to retire at based on current earnings..

as an example i may stop work at 63 and file at 66. the projected amount is based on me paying into the system working until 66 at my current rate. since not only did i cut back to part time already at age 62 but i may not be working at all from 63 until i file so i will get less then what the statement projection shows..

it will be the same for you.

[mcknight77]

Originally Posted by mathjak107

not quite the same.

it takes the highest 35 inflation adjusted years but it also assumes you will be paying in to the system until the age you are projecting to retire at based on current earnings..

as an example i may stop work at 63 and file at 66. the projected amount is based on me paying into the system working until 66 at my current rate. since not only did i cut back to part time already at age 62 but i may not be working at all from 63 until i file so i will get less then what the statement projection shows..

it will be the same for you.

OK, that makes a bit more sense.

[theoldnorthstate]

yes, agree that if you do not continue to work with the same income your social security check will be less than if you work to full FRA.

your statements and the calculations are based upon as if you did work and contribute at the same level to FRA.

[ABQ2015]

I doubt it will go down by much. I've calculated my SS if I stopped working at age 60 (rather than at age 62) or if I just work part time from age 60 to 62 and the monthly amount goes down only $50 or so.

[nmnita]

Originally Posted by mcknight77

I'm 64 and waiting for my full retirement age of 66 to draw my SS.

However, my work income was reduced by half a couple of months ago. I have enough income to meet expenses without drawing my SS now or taping my 401k.

My question is: Will my benefit go down from what it is projected to be at 66 because my income has now been reduced?

Jim

This would depend on the number of years, your overall earnings and a few other thing. My guess, certainly not by much, if at all. Contact SS to get a professional answer.