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Old 02-07-2012, 02:34 PM   #41
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I'd suggest each individual needs to run the numbers for SS benefits using the online calculator available on the SSA.gov website. SS is front loaded so having a few years of low or zero income at the end (IOW, retiring early) usually has a very minor impact on benefit amounts.

For that same reason, working part time to try to increase your SS benefits will likely be an effort with little reward. Once again, the SS calculator will allow you to see what part time work would do for your individual situation.
I agree - you need to run the numbers on the calculator.

I didn't start working in the USA until I was well over 32 years old and RE'd
less than 23 years later. As I approached 55 I experimented with working an extra couple of years, at max FICA contributions, and it made very little difference, which was surprising as I had over 12 years of zero earnings.
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Old 02-07-2012, 04:50 PM   #42
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Originally Posted by brucethebroker View Post
Or, if you worked part time, say while in college, you might have a number of years of earnings in the $1500 range (Back when we earned less than $1 an hour!).
True, but don't forget those early year earnings are indexed to the current time to account for inflation:

Average Indexed Monthly Earnings - Wikipedia, the free encyclopedia

Those early numbers on your annual statement (if you still have one) are worth more than you know...
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Old 02-07-2012, 07:34 PM   #43
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+1
And there are times that your 'vacation' to Canada or Europe is canceled doe to unexpected circumstances, like a birth of grandchild. So the money is not spent this year...
I'd have to defer to REWahoo's experience, but in the long run I suspect that the Canada/Europe vacation is cheaper than a grandchild...
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Old 02-07-2012, 07:44 PM   #44
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I'd have to defer to REWahoo's experience, but in the long run I suspect that the Canada/Europe vacation is cheaper than a grandchild...
Depends on how many years you plan to stay...
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Old 02-07-2012, 08:06 PM   #45
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Depends on how many years you plan to stay...
I'm not so sure. Also hope DD isn't reading this.
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Old 02-07-2012, 11:47 PM   #46
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Depends on how many years you plan to stay...
I was expecting that you'd kick them out of your house no later than age 21!
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Old 02-08-2012, 09:05 AM   #47
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Once your 35 year average gets above the second bend point on the formula, then the effect of future earnings becomes small. Recall that past the second bend point the addition is 15% of the amount added. For example assume the limit on earnings for 2012 of 110100 and you earn that, you divide and get 9175 per month, then divide by 35 and you get 262 and multiply by 15% and get an addition of $39.32/month.
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