Social security calculation

[DatumPoint5]

There is a good article, graph and a downloadable spreadsheet related to this issue here at this link......

Retiring Early: Effect On Social Security Benefits
Retiring Early: Effect On Social Security Benefits

I downloaded the spreadsheet and found it to be a useful tool. Definitely useful for very early retirees looking for when they have passed the second "bend point". You will find when you are "after the second bend point", the more earnings you have, the less it impacts the payout.

The article is worth reading, but, for those who want to "jump to the spreadsheet", it can be found here...
https://docs.zoho.com/sheet/published.do?rid=n9y9p8dc09c5cbf2c4357beba2771b70c1ab3

 

[scrabbler1]

Thank you, datumpoint, for posting your link. I am not at home now where my spreadsheet is until tomorrow and I wouldn't know how to post it anyway. I could email a copy of the spreadsheet (after I change the data and convert it to Excel) to those interested in it.

My spreadsheet is similar to the linked one. It has earnings, an index factor, and indexed earnings. Mine then averages the AIME at the end then figures out a PIA by playing with the bend points.

 

[Cobra9777]

I use the AnyPIA detailed calculator that you can download from ssa.gov. The first time I used it, I took about an hour getting to the point where I could replicate my summary numbers from ssa. Most of that time was spent pressing F1 and reading help documentation to understand all the forms and required fields. After I got some confidence that it was working correctly, I customized for our situation. I retired last year, but I'll have some very specific earnings in 2014 and 2015 from exercising my remaining megacorp options. I input these earnings figures, played around with various benefit increase assumptions, and dates to begin collecting. I did the same with DW's data.

I wish there was a free spreadsheet version of this so I could see the underlying calculations and do what-if's more easily. This tool is not very intuitive to use, and the documentation seems to be a bit technical and geared toward people who already have a working knowledge of how SS is calculated. I can't bring myself to spend $150 for ESPlanner.

 

[springnr]

For those that have Early Retired, no longer paying into SS, here is my N=1 on how to easily tell your FIRE PIA. Look at the SS Estimated Benefits page, right below where it tells you your Retirement PIA at 66 and the 62 or 70 amounts, it list:

Disability
You have worked enough credits to qualify for disability benefits.
If you become disabled right now your estimated payment would be: $X,XXX a month.

The disability amount matches the calculator output when i enter 0s for future income. This makes sense because if you are disabled, you will not be paying into SS and zeros are input for future income. Maybe someone can verify this holds true for them, looks like a nice shortcut.

 

[rodi]

Hmmm. I was able to get the info from the retirement estimator.

Retirement Estimator

You need your approx. earnings from last year (and a bunch of other personal info). That helps SS make sure you're you.... since it's using your actual SS earnings.

That gives you an estimate based on the idea that you'll continue to earn about the same amount... for your various retirement dates. (62, FRA, 70).

BUT - there's a "Add a New Estimate" button right below that info.
If you select a retirement age LATER than 62, but enter average future earnings of ZERO - you can get the various scenarios for taking SS at various ages - even if you stop working well before then.

In other words - it's available on the SSA.gov website - if you know how to use the tool.

Using my info as an example - I would get $300/mo less if I collect at 67 with my retired status starting now - than if I work till age 67. Working from now till 67 is not worth 300/month... in my opinion. (I'm 53). If I work till age 70 - it only pays me $300 more per month than if I don't work - but don't collect till 70.