Quote:
Originally Posted by loupow
I just turned age 64 and would like to wait till FRA at age 66 to collect social security. I would like to retire in about 4 months and and live on IRA and 401k money till age 66. Will this money from the IRA and 401k counts towards social security earnings till my FRA. When I went to social security's retirement estimator and entered estimated earnings of 30,000 a year till age 66 instead of what last years earnings of 68000 the benefit was reduced at my FRA by $60 a month. Does this sound about right. Thanks for any insight on this.
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The reason the estimate might have gone down from the last time you checked, was that the estimator assumed that you would make the $68000.00 thru FRA, and then when it got lowered by $38000.00 a year for a couple of years, it made a big difference. I would say you might have zeroes in your computation, so $68000.00 was giving you a pretty good boost. Because SSA uses your high 35 years, and if you don't have 35 years, they make up the difference with zeroes and your average goes down.
If I were you, I might rethink retiring this year. Think about keeping that job until FRA or at least possibly begin to collect January of the year you reach FRA, even if you work that year, so you can boost the SSA as much as possible. Once you retire you won't even have $30000.00 a year in earnings.
The IRA and 401 K have probably taken a hit over the last few months, and waiting to begin withdrawing might enable them to recover.
Good luck!
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