Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Is the early S.S. reduction straight line??
Old 06-01-2015, 02:38 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,207
Is the early S.S. reduction straight line??

Based on my S.S. Estimate form I got, I know what my benefit will be at age 66, and if I had taken it at age 62. I may decide to start collecting at age 63.
Is it safe to presume my benefit will 1/4 of the difference between those two age benefits, added to the age 62 amount? I could not find this specifically addressed in the online brochures....before I gave up.
__________________

__________________
mystang52 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-01-2015, 02:54 PM   #2
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 1,707
I believe that it should be fairly close (within 1%) to that.

You can use the SS calculator at Quick Calculator
to investigate yourself.

I believe the formula that they use for taking SS early is :
Start with your PIA amount at your full retirement age, then apply a percentage reduction of 5/9 of 1% per month for the first 36 months and 5/12 of 1% for each additional month that you take early.

-gauss
__________________

__________________
gauss is offline   Reply With Quote
Old 06-01-2015, 07:32 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,815
Quote:
The percentage reduction is 5/9 of 1% per month for the first 36 months and 5/12 of 1% for each additional month.
It is two straight lines.

In this case, the "first" 36 months are those closest to your NRA.

When the NRA was 65, the factor at 62 was 36 x 5 /9 = 20%, so the benefit was 80% of PIA.

For an NRA of 66, the reduction factor is 20% + 12 x 5/12 = 25%, so the benefit is 75% of PIA.
Benefit Reduction for Early Retirement
__________________
Independent is offline   Reply With Quote
Old 06-02-2015, 07:19 AM   #4
Full time employment: Posting here.
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 730
I believe that the PIA estimate for FRA assumes that you work until that age at the same salary level as prior years adjusted for inflation. If you retire at 63 you would need to input three fewer years into the online calculator to determine the downward revised PIA and then further reduce that number for taking it 3 years early. The calculator allows you to adjust variables such as final year worked and salary amounts.
__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Old 06-29-2015, 05:26 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,207
Belated thanks to those who gave me this valuable info
__________________
mystang52 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Reduction in Soc Sec by retiring early Debinnov a FIRE and Money 18 09-11-2014 10:14 PM
Retirement Spending Is Not a Straight Line Onward FIRE and Money 86 08-14-2013 03:42 PM
In-Line Etiquette: Opening a new checkout line Amethyst Other topics 44 11-12-2010 07:42 PM
Home Equity Line of Credit Or Unsecured Personal Line of Credit? helocked Hi, I am... 18 05-03-2008 09:27 PM

 

 
All times are GMT -6. The time now is 01:00 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.