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Another way to calculate
Old 03-18-2018, 11:11 PM   #1
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Another way to calculate

I'm FIRE. DW has 4+ yrs work yet to being fully vested in SS. We are out of the market except for CD,s. With the rising interest rates, the returns are moving us up into higher tax brackets. Is there a calculator that would help explain whether it's worth working the extra 4+ yrs or if she is just working to pay the higher tax? I didn't get good indication at all from our tax accountant on this and I'm having one heck of brain blockage and can't seem to make sense of this. TIA
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Old 03-19-2018, 05:19 AM   #2
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I used the SS website calculator

https://www.ssa.gov/benefits/retirement/estimator.html

I would have 23 years service at the age I wanted to RE and when I ran estimates based on staying on for a few years I was very surprised at how little extra money it provided. I decided it wasn’t worth it and retired as soon as I could and be qualified for retiree HI from my company and stayed with the 23 years of contributions.
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Old 03-19-2018, 05:22 AM   #3
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Have you tried FIREcalc calculator (at bottom of page)?
If I was only invested in CDs, then on the Your Portfolio tab, I would choose "A portfolio with consistent growth....", and enter a lower value for growth than what I enter for inflation. (Since I don't think CDs keep pace with inflation very well).
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Old 03-19-2018, 05:23 AM   #4
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This sounds like a combination of a "when to take SS" and "should I keep working" thread.

I'd start with a calculator like FireCalc and/or iOrp. They likely won't give you your answer but should get you on the path to finding it. I'd expect subsequent replies to bring more insights than mine.
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Old 03-19-2018, 06:07 AM   #5
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Quote:
Originally Posted by Alan View Post
I used the SS website calculator

https://www.ssa.gov/benefits/retirement/estimator.html

I would have 23 years service at the age I wanted to RE and when I ran estimates based on staying on for a few years I was very surprised at how little extra money it provided. I decided it wasnít worth it and retired as soon as I could and be qualified for retiree HI from my company and stayed with the 23 years of contributions.
+1.
This is an excellent site for your question. In general, once you have worked around 30 years putting into SS, the additional years usually don't yield substantial more monies.
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Old 03-19-2018, 08:03 AM   #6
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+1.
This is an excellent site for your question. In general, once you have worked around 30 years putting into SS, the additional years usually don't yield substantial more monies.
Curious how you came out to 30 years. I understand making it to the second bend point but have never seen anything tied to number of years.
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Old 03-19-2018, 08:47 AM   #7
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Originally Posted by karen1972 View Post
Curious how you came out to 30 years. I understand making it to the second bend point but have never seen anything tied to number of years.
Nothing mathematical. I just remembered when I was calculating the numbers for myself, the additional years came out to about $50 extra monthly.
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Old 03-19-2018, 09:00 AM   #8
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Curious how you came out to 30 years. I understand making it to the second bend point but have never seen anything tied to number of years.
SS is determined partly by the average of 35 years of income that was subject to SS contributions. with less than 35 years of eligible income, the missing yars are averaged in at $0 per year.

See Appendix D in this document for 2017:

https://www.ssa.gov/policy/docs/statcomps/supplement/
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Old 03-19-2018, 10:16 AM   #9
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SS is determined partly by the average of 35 years of income that was subject to SS contributions. with less than 35 years of eligible income, the missing yars are averaged in at $0 per year.

See Appendix D in this document for 2017:

https://www.ssa.gov/policy/docs/statcomps/supplement/
Understood which is why I didn't get the 30 comment. I technically have 29 years of income including part-time, coops in college, etc. I've been out of the workforce long enough that SS shows your payout will be X if you earn $0 for the rest of your working life. Yes I left money on the table, but made it to the second bend point so not really worried about it.
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I found this fascinating retirement chart
Old 03-19-2018, 08:57 PM   #10
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I found this fascinating retirement chart

https://www.thesimpledollar.com/the-...ive-ever-seen/
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