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40 and retiring?
Old 07-24-2008, 01:47 PM   #1
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40 and retiring?

Just stumbled on this site and have a question about Social Security. I realize that in 22+ years we may not have any social security at all. I have paid into SS for over 10 yrs (got my 40 credits). Questions:

1. If I no longer ever receive a salary/paySS - will my future benefits decline?
2. When future benefit amt is calculated -- how many past quarters do they look at to calculate your average salary/payments?

Pretty new to this concept -- so feel free to tell me if I have misunderstood something - other than the obvious - No, I am not counting on SS for my retirement...

Thanks.
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Old 07-24-2008, 02:13 PM   #2
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I'll be in your shoes in another 10-15 years. Under the current system/rules, you'll likely get a SS check, but a smaller one than what you would get if you worked another 20 years. They look at the top 30 years I believe. In 22 years they will essentially look back at your highest 30 years of qualified earnings history and inflate it to present day (in 22 years) dollars using wage inflation rates.

However I believe due to the regressive payout structure that compensates lower-income wage earners proportionally higher than high-income wage earners, you'll still get a relatively high payout (assuming system remains unchanged and solvent).
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Old 07-24-2008, 03:05 PM   #3
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If you have your Social Security annual statement that gives your yearly wages and anticipated benefits you can go to the SSA.gov website and use their advanced calculator to try and come up with a number. I believe they consider all wages nowadays-and use a factor table that brings older wages up to current valuations

But hey if you can retire now and not need the SS $ for 22 years it is just going to be walking around money for you -right? Congrats on the early retirement-enjoy!
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Old 07-24-2008, 06:37 PM   #4
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Quote:
Originally Posted by FUEGO View Post
I'll be in your shoes in another 10-15 years. Under the current system/rules, you'll likely get a SS check, but a smaller one than what you would get if you worked another 20 years. They look at the top 30 years I believe. In 22 years they will essentially look back at your highest 30 years of qualified earnings history and inflate it to present day (in 22 years) dollars using wage inflation rates.
).
It's actually your top 35 years of income. If you work 20 years, you'll have 15 years of of zeros averaged in with your income from your 20 years. I would not expect you to get much more than $800 per month if you take SS at 62. Of course, that is a WAG without knowing your particulars.

Here's the SS Administration's page to do some calcs:

Benefit Calculators
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Old 07-24-2008, 06:43 PM   #5
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The SSA has an excellent website at www.ssa.gov .
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Old 07-24-2008, 08:31 PM   #6
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Originally Posted by huskerblue View Post
It's actually your top 35 years of income.
That is correct - it is the top 35 years. Thanks.
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Old 07-25-2008, 04:52 AM   #7
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Old 07-29-2008, 10:45 AM   #8
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Originally Posted by dswitzer1 View Post
I realize that in 22+ years we may not have any social security at all.... I am not counting on SS for my retirement.
Doesn't that render your questions largely moot? :confused:
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