SS question

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
indexonlyplease
Posts: 1498
Joined: Thu Apr 30, 2015 12:30 pm
Location: Florida

SS question

Post by indexonlyplease » Fri Mar 15, 2019 8:14 am

On the SS link you can get an idea of how much benefit you will receive at 62,67 and 70. All this is assuming you work until that age. How do you determine early retirement (ie stop working at 55 and never work again)? What will be your benefit?

marcopolo
Posts: 1818
Joined: Sat Dec 03, 2016 10:22 am

Re: SS question

Post by marcopolo » Fri Mar 15, 2019 8:35 am

indexonlyplease wrote:
Fri Mar 15, 2019 8:14 am
On the SS link you can get an idea of how much benefit you will receive at 62,67 and 70. All this is assuming you work until that age. How do you determine early retirement (ie stop working at 55 and never work again)? What will be your benefit?

You could use this directly from Soc Sec:
https://www.ssa.gov/benefits/retirement/estimator.html

You put in your information, it will use your record to date, and assumes you keep making same amount until retirement.
But, when the estimate comes up, click on the button at the bottom that says "Add Another Estimate".
This will allow you enter an earlier retirement age, and expected earning until then. You can only enter one number, it assume same income until specified retirement date.

This will provide the estimated benefit at your specified retirement age, or at 62, if you specify an age younger than that. You can then easily compute benefits at any later age by using delay credit amounts (roughly 6%/yer between 62 and FRA, 8%/yr between FRA and age 70).
Once in a while you get shown the light, in the strangest of places if you look at it right.

User avatar
Wiggums
Posts: 462
Joined: Thu Jan 31, 2019 8:02 am

Re: SS question

Post by Wiggums » Fri Mar 15, 2019 8:43 am

marcopolo wrote:
Fri Mar 15, 2019 8:35 am
indexonlyplease wrote:
Fri Mar 15, 2019 8:14 am
On the SS link you can get an idea of how much benefit you will receive at 62,67 and 70. All this is assuming you work until that age. How do you determine early retirement (ie stop working at 55 and never work again)? What will be your benefit?

You could use this directly from Soc Sec:
https://www.ssa.gov/benefits/retirement/estimator.html

You put in your information, it will use your record to date, and assumes you keep making same amount until retirement.
But, when the estimate comes up, click on the button at the bottom that says "Add Another Estimate".
This will allow you enter an earlier retirement age, and expected earning until then. You can only enter one number, it assume same income until specified retirement date.

This will provide the estimated benefit at your specified retirement age, or at 62, if you specify an age younger than that. You can then easily compute benefits at any later age by using delay credit amounts (roughly 6%/yer between 62 and FRA, 8%/yr between FRA and age 70).
+1

Enter the age you want to stop working. Lets say 55, it will put zeros from 56 to age 62, then calculate what you would receive at age 62. If you say you will stop at age 60, it will include fewer zeros. If you stop work after age 62 it will calculate your benefit at that age.

You can't get your social security payment before age 62 unless you are disabled. If you wait until after 62 to collect, no matter when you stop working, you get a bigger monthly check. If you work more than 35 years it will not include some years in the calculation. Which ones depend on your earnings record.

Buckeye
Posts: 463
Joined: Mon Feb 26, 2007 3:08 pm

Re: SS question

Post by Buckeye » Fri Mar 15, 2019 9:09 am

For a close approximation you could use https://www.ssa.gov/OACT/quickcalc/

Enter an early retirement date and it will generate amount of your benefit at age 62. Then you can calculate benefit for later start date.

For example.....if born 1960 and later..... the benefit would be X/0.7 at age 67 and it would be X(1.8) at age 70.....where X is the benefit at 62.

juice
Posts: 5
Joined: Tue May 31, 2011 7:12 pm

Re: SS question

Post by juice » Fri Mar 15, 2019 10:14 am

This tool works well for an early retiree to determine SS payout

https://socialsecurity.tools/

Topic Author
indexonlyplease
Posts: 1498
Joined: Thu Apr 30, 2015 12:30 pm
Location: Florida

Re: SS question

Post by indexonlyplease » Sat Mar 16, 2019 8:28 am

All the calculators work good.

Another question: I may not work again or work part time this year. I assume the earliest I will collect is at 67 yrs old. How do I find out how much money I make a year will make any futher difference in my SS.

Meaning, I paid max SS for the last 20 years of my career. Will working part time making lets say max 20k a year make any difference?
Last edited by indexonlyplease on Sat Mar 16, 2019 8:43 am, edited 2 times in total.

User avatar
RickBoglehead
Posts: 2525
Joined: Wed Feb 14, 2018 9:10 am

Re: SS question

Post by RickBoglehead » Sat Mar 16, 2019 8:33 am

indexonlyplease wrote:
Sat Mar 16, 2019 8:28 am
All the calculators work good.

Another question: I may not work again or work part time this year. I assume the earliest I will collect is at 67 yrs old. How do I find out how much money I make a year will make any futher difference in my SS.

Meaning, I paid max SS for the last 20 years of my career. Will working part time making lets say max 20k a year make any difference?
Easy answer, harder answer. Take your pick.

Easy answer - SS uses the highest 35 years of earnings. So, unless you are going to earn more than the lowest year it's currently using, you won't have any impact on your benefit.

Harder answer - pull up your earnings on the SS site. Pull up the table that shows max earnings credited per year, and the factor they multiply by (older earnings get higher factor, recent earnings get no multiplier), and then use the formula to determine the benefit. I did this just yesterday, and it took me about 1/2 hour to put together.
Avid user of forums on a variety of interests - financial, home brewing, F-150, PHEV, home repair and more. Enjoy learning and passing on knowledge.

juice
Posts: 5
Joined: Tue May 31, 2011 7:12 pm

Re: SS question

Post by juice » Sat Mar 16, 2019 9:21 pm

indexonlyplease wrote:
Sat Mar 16, 2019 8:28 am
All the calculators work good.

Another question: I may not work again or work part time this year. I assume the earliest I will collect is at 67 yrs old. How do I find out how much money I make a year will make any futher difference in my SS.

Meaning, I paid max SS for the last 20 years of my career. Will working part time making lets say max 20k a year make any difference?
socialsecurity.tools will allow you to enter expected future earnings and see the effect it will have

Post Reply