Is the early S.S. reduction straight line??

[mystang52]

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.

[gauss]

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

[Independent]

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

[Golden sunsets]

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.

[mystang52]

Belated thanks to those who gave me this valuable info