Social Security Calculation

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searchher
Posts: 11
Joined: Tue May 22, 2018 11:50 am

Social Security Calculation

Post by searchher » Sun Sep 16, 2018 1:10 pm

Does job loss/decrease in income at 59 years old impact social security prospects? Does it average your most recent earning years to determine an amount or something different like your entire career, or just 10 highest earning years?

I was a high earner from 37-45 and from 54-59 and then lost my job. What impact will the job loss have on how much social security I can expect to collect?

Silk McCue
Posts: 1118
Joined: Thu Feb 25, 2016 7:11 pm

Re: Social Security Calculation

Post by Silk McCue » Sun Sep 16, 2018 1:26 pm

The Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or “primary insurance amount.” ... You can begin to receive Social Security benefits as early as age 62, but at a reduced rate.
You can use this tool developed by. Boglehead and shared in another thread on this site to find the precise answer for your individual situation. There are other calculators on the web as well that are also free.

https://socialsecurity.tools

Cheers

GeoffD
Posts: 42
Joined: Tue Mar 20, 2018 1:31 pm

Re: Social Security Calculation

Post by GeoffD » Sun Sep 16, 2018 1:35 pm

searchher wrote:
Sun Sep 16, 2018 1:10 pm
Does job loss/decrease in income at 59 years old impact social security prospects? Does it average your most recent earning years to determine an amount or something different like your entire career, or just 10 highest earning years?

I was a high earner from 37-45 and from 54-59 and then lost my job. What impact will the job loss have on how much social security I can expect to collect?
It's your inflation-adjusted highest 35 working years. You say you have 15 high income years. What do the next lower 20 look like, adjusted for inflation?

I keep a spreadsheet that I update yearly when SSA publication no. 05-10070 comes out. I know what my inflation-adjusted 35 "good" years are.

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