Effect of not working on Social Security

[Katsmeow]

I semi-retired 5 years ago and currently work very part-time. When I semi-retired I had been working full-time (including that year) for 32 years. I had some part-time work before that and then the semi-retired work, which for the first couple of years was for a lot more hours than I'm working now.

Anyway, I played with the SS calculator and found that none of the earning I currently make will increase my SS one iota. I would have to make (if I recall) something over $80k a year to make any increase in SS at all and that would only be a small increase. Currently my projected SS is about 98% of the max so it wouldn't make much sense for me to worry about trying to get to that max.

 

[Droo]

I made a table awhile back based on the maximum contribution each year for X years, using their formula. I started in 1979 and assumed you worked X years at the maximum contribution, and then stopped.

I can't remember offhand for sure, but I assume these numbers are your benefit if you retire at 66 or whatever the normal age is.

10 year benefit $1237.20
15 year benefit $1648.95
20 year benefit $2061.43
25 year benefit $2248.25
30 year benefit $2441.72
35 year benefit $2642.94


I attached the spreadsheet I made. I had to change extension from xlsx to xls to allow the upload - just change it back or accept the warning message you get when you open it.

 

[FANOFJESUS]

You're right! The link below shows the actual ranges and shows the correct percentage of 15%. Good call!

Primary Insurance Amount


Sent from my iPhone using Early Retirement Forum

If I went out and earned $826 a month how much would that help my 0 years. I am a low wage earner nothing over 32k year and now at 0.

 

[Independent]

If I went out and earned $826 a month how much would that help my 0 years. I am a low wage earner nothing over 32k year and now at 0.

If you did that for one year, it would replace one 0 with $9,912.
That would increase your Average Indexed Monthly Earnings by
($9,912/35)/12 = $23.60

If your AIME before this additional year at $826 were below $826, it would add .90 x $23.60 = $21.24 to your PIA (monthly benefit at normal retirement age).

If your AIME before this additional year at $826 were above $826, it would add .32 x $23.60 = $7.55 to your PIA.

 

[FANOFJESUS]

Thanks that was a great answer.

 

[TimSF]

I ER'd at 50 after 20 years at a high-paying job. My SS will be reduced by about $400 a month at FRA as a result.