Social Security Calculator for ER?

[McGriffin]

Does anyone know of a calculator that would help to estimate social security and include a stop-working date that is different than the 'retirement' date? For example, if I were to stop working at 55 but waited to collect SS at 65 - 70, which means that I wouldn't be contributing to SS for those 10-15 years. Most of the calculators that I have seen seem like they assume that you will work up to the date that you start collecting. Thanks for any help.

 

[Gumby]

I believe that the calculator at the SSA.gov site allows you to pick a retirement (i.e. -- stop working) date and a date to start collecting benefits.

https://www.ssa.gov/myaccount/retir...schmEm7abGpSt53SWY3sOYPpxsqZ-rvMaAuMNEALw_wcB

 

[MichaelB]

The Social Security Administration has a calculator called anypia which allows you to input your actual earnings history, estimate future earnings - including years with no earnings - and estimate the pension based on that data. That sounds like what you are looking for. It’s here https://www.ssa.gov/oact/anypia/anypia.html

 

[McGriffin]

Very helpful, thank you both!

 

[USGrant1962]

I believe that the calculator at the SSA.gov site allows you to pick a retirement (i.e. -- stop working) date and a date to start collecting benefits.

https://www.ssa.gov/myaccount/retir...schmEm7abGpSt53SWY3sOYPpxsqZ-rvMaAuMNEALw_wcB

Actually, retirement date on that site is when you start collecting. You cannot select prior to age 62. But you can zero out your future earnings, which should be close enough for many early retirees.

The ssa.tools website provides many more options (including SS cuts) and more views/outputs. Recommended.

 

[Gumby]

...But you can zero out your future earnings, which should be close enough for most early retirees.

Now that you mention it, that's how I did it. Zeroed out my future earnings. And if you open a "my ssa" account, it will already know your past earnings.

 

[Out-to-Lunch]

Another vote for the http://ssa.tools site. In addition, if you prefer to see the mechanics and like Excel, there is a nice downloadable spreadsheet available from a Bogleheads user: https://www.bogleheads.org/forum/viewtopic.php?t=262772

 

[McGriffin]

Unless I calculated incorrectly, retiring at 55 won't have as much of an impact on SS as I thought. Waiting to collect at full retirement age (67) is only a difference of ~$150/month. I would have thought it would be greater.

 

[RunningBum]

SS is calculated using your 35 highest earning years. So all you may be running into is replacing some lower earning years with higher, which doesn't change too much. I have some $0 years having retired at 49, and even staying on to fill those in wasn't going to change much.

 

[Out-to-Lunch]

Unless I calculated incorrectly, retiring at 55 won't have as much of an impact on SS as I thought. Waiting to collect at full retirement age (67) is only a difference of ~$150/month. I would have thought it would be greater.

Are you above the second bend point? Once you are above the second bend point, it is like pushing on a rope!

 

[Major Tom]

Unless I calculated incorrectly, retiring at 55 won't have as much of an impact on SS as I thought. Waiting to collect at full retirement age (67) is only a difference of ~$150/month. I would have thought it would be greater.

I don't remember the figures in my case, but I do remember being pleasantly surprised by the same discovery that you have just made. I only had about 23 years of income, give or take, and stopped working at age 45. I won't need SS, but it will make a very welcome difference.

 

[Gumby]

Are you above the second bend point? Once you are above the second bend point, it is like pushing on a rope!

If I may recommend one of my own posts, here is how to calculate what additional earnings will do for your social security benefit.

Your primary insurance amount (PIA) is the benefit you will receive at your normal retirement age (67 for those born in 1960). It is calculated based on your inflation adjusted average monthly earnings over the highest paid 35 years of your career, and it consists of three separate amounts: to wit, 90% of the first $1024; 32% of the amount between $1024 and $6172; and 15% of the amount over $6172 (this last amount is sometimes called the second bend point).

Let's assume that you are just at the second bend point right now, so your inflation adjusted average monthly wage is $6172, and you have exactly 35 years of earnings. So your monthly SS benefit at 67 would be (0.9 x 1024) + (0.32 x (6172-1024)) + (0.15 x 0) = $2569 per month. Now let's assume that in 2022 you earn and pay SS taxes on the maximum social security covered wage of $147,000. That is $12,250 per month and it will increase your average monthly wage by (12,250 - 6172)/35 = $173. Your PIA will increase by $26 per month (173 x .15).

To summarize, if you are at the second bend point and you max out social security wages next year, you increase your benefit by $26 /month or $312 per year. Obviously, if your average monthly earnings were over 6172 ($74k per year), the benefit of that additional year would be 15 cents less for every dollar over the second bend point. And if you earned less than the max social security amount of $12,250/mo ($147k per year) in 2022, it would be 0.4 cents per dollar less per month.

You can tinker with the average monthly wage and the amount you expect to earn in 2022 and see how that changes at various points. But the bottom line is that once you get 35 years in, additional years do not really add much to your benefit.

 

[McGriffin]

Are you above the second bend point? Once you are above the second bend point, it is like pushing on a rope!

Possibly? The bendpoint table that I found only shows bend points for people who have turned 62 up to the year 2022. I've got another 10 years before that happens.

 

[Gumby]

Possibly? The bendpoint table that I found only shows bend points for people who have turned 62 up to the year 2022. I've got another 10 years before that happens.

Add an estimated inflation adjustment to it. The fundamental result will not change. Once you get past the second bend point, there is only a tiny increase in monthly benefit resulting from working longer than 35 years total.

 

[McGriffin]

Add an estimated inflation adjustment to it. The fundamental result will not change. Once you get past the second bend point, there is only a tiny increase in monthly benefit resulting from working longer than 35 years total.

Thank you. It looks like I am indeed past the second bendpoint. I appreciate everyone's feedback! It has been very helpful.

 

[Sunset]

Unless I calculated incorrectly, retiring at 55 won't have as much of an impact on SS as I thought. Waiting to collect at full retirement age (67) is only a difference of ~$150/month. I would have thought it would be greater.

Could it be how you look at it ?

~$150/month vs $1,800/yr vs $36,000/twenty years.

 

[McGriffin]

Could it be how you look at it ?

~$150/month vs $1,800/yr vs $36,000/twenty years.

Yes, it is definitely a matter of perspective. But the difference in SS income seems very small compared to the level of happiness that retiring at 55 would bring me.

 

[madsquopper]

Is there an error on the basic My SSA page where they show you how your monthly benefit changes the longer you delay? I just checked out of curiosity, and it gives the same monthly benefit across all months of the same age (for example, the benefit for 68 years and 1 month is identical to 68 years and 10 months). I thought this would change month by month, and the pdf summary page states that in bold.

Doesn't really matter in my case, as I'm delaying until 70 so whatever I end up with is whatever gets calculated.

 

[McGriffin]

Madsquopper, I have seen that bug before, but currently it is showing different figures for me for the different dates on the 'Plan for Retirement' graph.

 

[oldtimer]

Is there an error on the basic My SSA page where they show you how your monthly benefit changes the longer you delay? I just checked out of curiosity, and it gives the same monthly benefit across all months of the same age (for example, the benefit for 68 years and 1 month is identical to 68 years and 10 months). I thought this would change month by month, and the pdf summary page states that in bold.

Doesn't really matter in my case, as I'm delaying until 70 so whatever I end up with is whatever gets calculated.

Would not expect any change until January the next year because because post-FRA delay credits in the same year accumulate, but do not get applied until January. The only exception is at age 70 when full credits are applied no matter what month.

 

[chassis]

Does anyone know of a calculator that would help to estimate social security and include a stop-working date that is different than the 'retirement' date? For example, if I were to stop working at 55 but waited to collect SS at 65 - 70, which means that I wouldn't be contributing to SS for those 10-15 years. Most of the calculators that I have seen seem like they assume that you will work up to the date that you start collecting. Thanks for any help.

The RPM spreadsheet can do this.

 

[GoBears]

Now that you mention it, that's how I did it. Zeroed out my future earnings. And if you open a "my ssa" account, it will already know your past earnings.

And this is how I did it, too. I discovered the difference in anticipated Social Security benefits between working until my full retirement age (66 yrs. 10 mos.) in January 2026 and retiring when I did in September 2021 is $34 per month. I’ll take retirement, thank you.

 

[Alan]

Unless I calculated incorrectly, retiring at 55 won't have as much of an impact on SS as I thought. Waiting to collect at full retirement age (67) is only a difference of ~$150/month. I would have thought it would be greater.

That was exactly what I discovered as I approached age 55. And I only had 23 years of contributions.

 

[Spanky]

Thanks for this discussion that led me to look at my SS benefits.
I just realize that I could have used a restricted application to claim a spousal benefit while letting my benefit continue to grow. I missed more than two(2) years of collecting the spousal benefits since I was at FRA on 4/2019. The primary criterion is that you are born on or before January 1, 1954.