Future Soc Sec payment estimate question

[WestwardBound]

I'm retiring at age 57. I intend to wait until 67 to take SS. I have over 35 years of earnings. Is the retirement benefit estimate on ssa.gov for FRA locked in or is it affected by my no longer contributing between age 57 and 67?

Thanks,
Dave

 

[braumeister]

It's based on your highest 35 years of earning.

 

[RunningBum]

You'd have to read what it says but I think it probably assumes you're going to keep working until FRA, making the same as you have been. This could be replacing some early lower wage earning years with higher earning years, so it could be estimating your benefit a little high. I doubt it's that much higher though.

Try it yourself putting in an estimate of the partial amount for your last year of working, and zeros after that.

 

[SecondCor521]

If you worked some of those additional years between 57 and 67 and if your income during any of those years was greater (on an inflation-adjusted basis) than any of your existing 35 years of earnings, then your SS benefit would go up. But probably not by much, especially if you were a relatively high earner.

Your existing SS benefit won't decay or anything. There are some wage and inflation adjustments that will be applied between now and whenever you apply for SS, but those are beyond my understanding.

If it helps, I've been retired for about three years and check my SS benefit about every year. So far it hasn't gone down at all. I think it may have even gone up a few bucks.

 

[Spock]

There is a specific SSA calculator where you can assume 0 income between now and start of SS. Depending on your past income history, the change usually isn't very big.

 

[Sunset]

OP - in the 10 years you will be waiting for SS, the estimated amount will correct itself once they realized you stopped working and start using ZERO for future earnings.
Plus inflation increases will increase the overall number so what you get will probably be a little more than what shows right now, as long as your earnings were quite steady.

 

[WestwardBound]

Thanks all.

 

[Dtail]

The below link is the SS calculator whereby you can input zero income for X number of years, so the SS calculation is more realistic vs, an assumption within the calculator that you will be earning your current earnings until FRA.

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

 

[WestwardBound]

The below link is the SS calculator whereby you can input zero income for X number of years, so the SS calculation is more realistic vs, an assumption within the calculator that you will be earning your current earnings until FRA.

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

Thanks for the link.

Using this calculator, I entered 67 as retirement age and 0 earnings between now (age 57) and age 67. It estimated about 300 less per month from $3053 to $2759.

 

[joeea]

Thanks for the link.

Using this calculator, I entered 67 as retirement age and 0 earnings between now (age 57) and age 67. It estimated about 300 less per month from $3053 to $2759.

Hmm, 300 seems excessive. These sorts of estimate changes are usually minimal.

You should try again and double check your answer.

 

[Dtail]

Hmm, 300 seems excessive. These sorts of estimate changes are usually minimal.

You should try again and double check your answer.

I agree, it does sound high. If you have been near the maximum in "SS inflation adjusted earnings" and hit the 2nd bend point, it probably should be much less than a $300 monthly reduction.

 

[Perryinva]

He never stated 35 max years. If his current years are near max, then the current SSA esrimate would be replacing 8 years with near max. $300/m reduction would be easy.

 

[deserat]

I would also use a 25% reduction fudge-factor (I am near your age) as a hedge against a possible reduction in benefits due to federal financial issues with SSN if you are doing retirement financial calculations. It would be for a worst case scenario and is a prudent risk scenario in my estimation.