Social Security [Benefit calculation vs claiming age]
Social Security [Benefit calculation vs claiming age]
I believe I understand correctly that when social security computes your benefits, it projects your current earnings into the future.
Does this apply through each claiming age?
For example, is the age 62 claiming benefit based on earning through age 62, the age 67 claiming benefit based on earning through age 67, and the age 70 claiming benefit based on earning through age 70?
Does this apply through each claiming age?
For example, is the age 62 claiming benefit based on earning through age 62, the age 67 claiming benefit based on earning through age 67, and the age 70 claiming benefit based on earning through age 70?
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Re: Social Security
I believe the answer is a qualified yes.Sahara wrote: ↑Tue Jun 15, 2021 6:24 am I believe I understand correctly that when social security computes your benefits, it projects your current earnings into the future.
Does this apply through each claiming age?
For example, is the age 62 claiming benefit based on earning through age 62, the age 67 claiming benefit based on earning through age 67, and the age 70 claiming benefit based on earning through age 70?
That said, in both the “retirement estimator” and within mySocialSecurity you can input zero income for future. There is (or at least used to be) a downloadable program called anyPIA that allowed you more flexibility. You can also download earnings record and make your own or use other estimators.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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Re: Social Security
For example, using the retirement estimator, the results say something like:RubyTuesday wrote: ↑Tue Jun 15, 2021 6:40 amI believe the answer is a qualified yes.Sahara wrote: ↑Tue Jun 15, 2021 6:24 am I believe I understand correctly that when social security computes your benefits, it projects your current earnings into the future.
Does this apply through each claiming age?
For example, is the age 62 claiming benefit based on earning through age 62, the age 67 claiming benefit based on earning through age 67, and the age 70 claiming benefit based on earning through age 70?
That said, in both the “retirement estimator” and within mySocialSecurity you can input zero income for future. There is (or at least used to be) a downloadable program called anyPIA that allowed you more flexibility. You can also download earnings record and make your own or use other estimators.
Code: Select all
If you start your benefits: And you earn an average of: Your benefit will be about:
At full retirement $XX,XXXX a year $x,xxx a month
(age 67) (from now until full retirement)
At age 70 $YY,YYYY a year $y,yyyy a month
(from now until age 70)
At age 62 $ZZ,ZZZZ a year $z,zzz a month
(from now until age 62)
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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Re: Social Security
Is there a way to calculate benefits at a certain claiming age while working to a different age? For example, calculate benefits if claimed at 70 but only work till 60?RubyTuesday wrote: ↑Tue Jun 15, 2021 7:04 amFor example, using the retirement estimator, the results say something like:RubyTuesday wrote: ↑Tue Jun 15, 2021 6:40 amI believe the answer is a qualified yes.Sahara wrote: ↑Tue Jun 15, 2021 6:24 am I believe I understand correctly that when social security computes your benefits, it projects your current earnings into the future.
Does this apply through each claiming age?
For example, is the age 62 claiming benefit based on earning through age 62, the age 67 claiming benefit based on earning through age 67, and the age 70 claiming benefit based on earning through age 70?
That said, in both the “retirement estimator” and within mySocialSecurity you can input zero income for future. There is (or at least used to be) a downloadable program called anyPIA that allowed you more flexibility. You can also download earnings record and make your own or use other estimators.Code: Select all
If you start your benefits: And you earn an average of: Your benefit will be about: At full retirement $XX,XXXX a year $x,xxx a month (age 67) (from now until full retirement) At age 70 $YY,YYYY a year $y,yyyy a month (from now until age 70) At age 62 $ZZ,ZZZZ a year $z,zzz a month (from now until age 62)
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Re: Social Security
I believe so, but you would need to play around with the tools to confirm. With the retirement estimator, after the initial estimate you can modify things like when you stop working. I’m not sure if it will do exactly what you want I or not.We're wolves wrote: ↑Tue Jun 15, 2021 7:18 amIs there a way to calculate benefits at a certain claiming age while working to a different age? For example, calculate benefits if claimed at 70 but only work till 60?RubyTuesday wrote: ↑Tue Jun 15, 2021 7:04 amFor example, using the retirement estimator, the results say something like:RubyTuesday wrote: ↑Tue Jun 15, 2021 6:40 amI believe the answer is a qualified yes.Sahara wrote: ↑Tue Jun 15, 2021 6:24 am I believe I understand correctly that when social security computes your benefits, it projects your current earnings into the future.
Does this apply through each claiming age?
For example, is the age 62 claiming benefit based on earning through age 62, the age 67 claiming benefit based on earning through age 67, and the age 70 claiming benefit based on earning through age 70?
That said, in both the “retirement estimator” and within mySocialSecurity you can input zero income for future. There is (or at least used to be) a downloadable program called anyPIA that allowed you more flexibility. You can also download earnings record and make your own or use other estimators.Code: Select all
If you start your benefits: And you earn an average of: Your benefit will be about: At full retirement $XX,XXXX a year $x,xxx a month (age 67) (from now until full retirement) At age 70 $YY,YYYY a year $y,yyyy a month (from now until age 70) At age 62 $ZZ,ZZZZ a year $z,zzz a month (from now until age 62)
Go to the site, create a mySocialSecurity account or use the retirement estimator and let us know what else you discover
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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Re: Social Security
Using retirement estimator, you could do that, but you’ll need to do some work arounds I think.
After doing an initial estimate, click “add a new estimate”
Then you can choose when you will stop working and how much on average (in today’s dollars) you’ll earn per year until then. If you choose age 60, it will show you an estimate of the age 62 benefit. You’ll have to do some calcs to get to your age 70 benefit. Do you know how to do that?
After doing an initial estimate, click “add a new estimate”
Then you can choose when you will stop working and how much on average (in today’s dollars) you’ll earn per year until then. If you choose age 60, it will show you an estimate of the age 62 benefit. You’ll have to do some calcs to get to your age 70 benefit. Do you know how to do that?
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
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Re: Social Security
No I don't. I do have a mysocialsecurity account. I suppose I would need to play around with the various calculators. Was hoping there was a clean easy way to do that but it's not a pressing concern. More just curious at this point. Thanks for the reply.RubyTuesday wrote: ↑Tue Jun 15, 2021 7:32 am Using retirement estimator, you could do that, but you’ll need to do some work arounds I think.
After doing an initial estimate, click “add a new estimate”
Then you can choose when you will stop working and how much on average (in today’s dollars) you’ll earn per year until then. If you choose age 60, it will show you an estimate of the age 62 benefit. You’ll have to do some calcs to get to your age 70 benefit. Do you know how to do that?
Re: Social Security
Bogleheads Personal Finance Toolbox has a sheet where this calculation can be done with your own earnings record.
Re: Social Security
Thanks. I've been able to calculate my benefit without further earnings. I was interested in how the projections work as a general rule.RubyTuesday wrote: ↑Tue Jun 15, 2021 6:40 amI believe the answer is a qualified yes.Sahara wrote: ↑Tue Jun 15, 2021 6:24 am I believe I understand correctly that when social security computes your benefits, it projects your current earnings into the future.
Does this apply through each claiming age?
For example, is the age 62 claiming benefit based on earning through age 62, the age 67 claiming benefit based on earning through age 67, and the age 70 claiming benefit based on earning through age 70?
That said, in both the “retirement estimator” and within mySocialSecurity you can input zero income for future. There is (or at least used to be) a downloadable program called anyPIA that allowed you more flexibility. You can also download earnings record and make your own or use other estimators.
Re: Social Security
You may want to try ssa.tools for a better understanding of SS benefits.
Re: Social Security
Thanks for suggesting this site! Although at first glance it doesn't seem to define the accounting for future income, it does provide a statement regarding the effect of future earnings.
If you were to earn additional years of wages in the future, they would only affect your Social Security if you earned more than $XXXX in those years.
Re: Social Security
In a recent episode of the Retirement and IRA Show, they stated that Social Security wage indexing ends at age 60. They also stated that your PIA is locked in at age 62 and only income above your highest indexed earnings will change it. This illuminates the question I was attempting to answer in this thread. If someone is 55, and plans to earn at their current rate through age 62, it sounds like their SSA projection will be accurate. But if they plan to stop earn prior to age 62, there will be a differential.
Re: Social Security
There may be a differential. Your PIA is based on your 35 highest years of earnings, as adjusted by AWI.
If you have 35 “good years” (not part-time college jobs) then the additional work years may or may not replace early years after those early years are adjusted upwards by the AWI.
My final full year of work (age 61) replaced a good year with a slightly better year and increased my benefit by about $2 per month. If I had worked one more year at the same salary it would not have replaced a previous year (it would have been my 36th best year).
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
Re: Social Security
Thanks. This explains what I’ve seen using the Personal Finance Toolbox.David Jay wrote: ↑Sat Oct 30, 2021 6:56 pmThere may be a differential. Your PIA is based on your 35 highest years of earnings, as adjusted by AWI.
If you have 35 “good years” (not part-time college jobs) then the additional work years may or may not replace early years after those early years are adjusted upwards by the AWI.
My final full year of work (age 61) replaced a good year with a slightly better year and increased my benefit by about $2 per month. If I had worked one more year at the same salary it would not have replaced a previous year (it would have been my 36th best year).
Re: Social Security
Of course your PIA isn't really "locked in" as COLAs still get applied.
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Re: Social Security
Yes, there are a lot of moving parts. SS overview can be simplified if one thinks about it in real dollars.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius