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1956 Birthdate - First possible SS PIA over $3000

Posted: Mon Oct 23, 2017 1:47 pm
by David Jay
According to my calculation spreadsheet, the maximum PIA for someone who has met-or-exceeded the SS withholding maximum for 35 straight years and was born in 1956 is $3004 per month (for those born in 1955, the maximum was $2941 per my spreadsheet).

An individual's AWI indexing value is fixed at age 60, so all previous income history amounts will not change after age 60. One can add additional years of earnings but the impact is minimal. The lowest Average Wage for someone born in 1956 who has exceeded the withholding maximum for 35 years is $119,800 and the current withholding maximum is $127,200. So someone who has 35 years exceeding the maximum withholding would substitute $127,200 for 119,800 in their earnings record for working the year of 2017. Addition to PIA for working 2017: $2.60 a month

I went through this effort because DW was born in 1956. Her PIA is now fixed because she has confidently assured me that she will not have any additional earnings history.

[edit] minor note: I evaluated every year since 1970 for the highest 35 years. It turns out for those turning 60 in 2016 that those were the contiguous years 1982-2016. There are minor gaps in years for birth years 1955, 1957 and 1958 (1958 is as far as I have populated the spreadsheet). For instance, for those born in 1955 the highest withholding years were 1980 + 1982-2016 (i.e. 1981 was lower than 1980).

Re: 1956 Birthdate - First possible SS PIA over $3000

Posted: Mon Oct 23, 2017 2:02 pm
by Watty
David Jay wrote:
Mon Oct 23, 2017 1:47 pm
According to my calculation spreadsheet, the maximum PIA for someone who has met-or-exceeded the SS withholding maximum for 35 straight years and was born in 1956 is $3004 per month (for those born in 1955, the maximum was $2941 per my spreadsheet).
If it isn't too hard to tweak your spreadsheet it would be interesting to know what the PIA would be for someone that had 50% of the maximum withholding each year. If I am looking at that correctly that would be in the ballpark of the second bend point.

Re: 1956 Birthdate - First possible SS PIA over $3000

Posted: Mon Oct 23, 2017 3:19 pm
by David Jay
Watty wrote:
Mon Oct 23, 2017 2:02 pm
David Jay wrote:
Mon Oct 23, 2017 1:47 pm
According to my calculation spreadsheet, the maximum PIA for someone who has met-or-exceeded the SS withholding maximum for 35 straight years and was born in 1956 is $3004 per month (for those born in 1955, the maximum was $2941 per my spreadsheet).
If it isn't too hard to tweak your spreadsheet it would be interesting to know what the PIA would be for someone that had 50% of the maximum withholding each year. If I am looking at that correctly that would be in the ballpark of the second bend point.
Watty:

That number looks like $2182/mo, but a reminder that is only for someone born in 1956 who stops adding to their highest years in 2016. It is about $260/mo below the second bend point, so benefit is about $83/mo below the top of the second bend point.