Early Retirement Social Security reduction

[TexasRider]

Apologize if this is a standard question. I searched here and at SSA website - I swear I did.

How much is the reduction in SS benefits if I stop paying in at ER (54). I don't plan on taking benefits until 67 but if I retire at 54 I won't be paying in. I have been paying in for 35 years and have been maxing out the pay-in for the last 15 or so.

Thanks all

 

[Fedup]

Not much. I stopped contributing after age 55, but I have 36 years and I believe the max anybody would get at 70 is $3500, I think I'm getting something like $3426, per SSA website estminate. I didn't look at age 67 because I don't intend to get my SS until 70.

 

[braumeister]

The difference is probably much smaller than you think.

But go to the SS website and download their calculator. Plug in your earnings from each year and enter zero for the years after you stop earning. The calculator will give you a pretty accurate estimate.

 

[Whisper66]

But go to the SS website and download their calculator. Plug in your earnings from each year and enter zero for the years after you stop earning. The calculator will give you a pretty accurate estimate.

Link to the SS website and calculator - https://www.ssa.gov/OACT/anypia/anypia.html

 

[Which Roger]

Just one datapoint: I earned about the maximum for 23 years, with minimal (e.g, summer job) earnings for about 10 years before that, and retired at 51. My payout will be about 85% of the maxmimum.

 

[Llep]

I have been checking the SS website weekly to see if my account has been updated. Just filed 2016 a few weeks ago and it was the first ever without W2 income. Looking forward to getting actuals instead of an estimate. I did the estimate calculator years ago and came out with an estimate of 86.5% of what their current estimate was for me. Stopped paying in at 52.

 

[Blue Collar Guy]

I researched this in 2008

Apologize if this is a standard question. I searched here and at SSA website - I swear I did.

How much is the reduction in SS benefits if I stop paying in at ER (54). I don't plan on taking benefits until 67 but if I retire at 54 I won't be paying in. I have been paying in for 35 years and have been maxing out the pay-in for the last 15 or so.

Thanks all

I called social security back in 2008, i can not remember the exact amount but leaving at 46 instead of 62 resulted in a monthly reduction of about 215 dollars.

 

[NW-Bound]

I have been checking the SS website weekly to see if my account has been updated. Just filed 2016 a few weeks ago and it was the first ever without W2 income. Looking forward to getting actuals instead of an estimate. I did the estimate calculator years ago and came out with an estimate of 86.5% of what their current estimate was for me. Stopped paying in at 52.

It could be because the estimate you had years ago has been increased due to inflation up to the current number.

 

[Blue Collar Guy]

there is a website for you to calculate this. you need to register with the soc sec administration. then there is a calculator you can play with, its called Retirement Estimator,. i just did it . remember its the best 35 years they calculate, so if you have 35 years that are good its like zero difference. i just reread your post you have 35 years and 15 max ones. its going to be chump change, dont worry about it, but use the calculator let us know.

 

[Walt34]

I didn't bother to download the software, just used the online calculator. When I did file for SS the estimator was within a couple of dollars.

 

[Llep]

It could be because the estimate you had years ago has been increased due to inflation up to the current number.

I apologize. I don't believe I explained myself well. The 86.5% result was what I got for a reduction of benefits (13.5%) when I ran my numbers through the calculator years ago and set future earnings at zero. Since then I have just ballparked my SS numbers by multiplying whatever their current estimates were by 86.5%. 2016 was the first year I had no earnings subject to SS tax and I am curious to see how close their new estimates match those the calculator gave me.

 

[Fedup]

Only W-2 income where you pay FICA tax or self employment tax for SS calculator. Not investment income.

 

[LastOfTheBoomers]

Do some googling for SSA Bend Points - reaching the second bend point is key.

 

[TexasRider]

Thanks all! Appreciate the help.