[USER]

How is the social security payment impacted if you retire early? In my case, I want to retire at age 55 (which is 7 yrs out).

The ssn website says my expcted monthly benefit at age 62 is $2680 and $4054 if I wait until age 67.

Thanks!

[Chung]

As far as I understand, benefit is the same, you just have to wait to get it.

It’s based on highest 30 or 35 years of working.

Your benefit just wouldn’t rise any more.

[Osborn]

I retired at 54. I went in and put date earned income would be zero and it recalculated and let me understand what payouts would be from 62-70 depending on when I wanted to take it.

[Wsquared]

I wouldn’t start collecting Social security until you are 67. Or 70 to get maximum amount.

sS calculated based on your last 3 years of work, so if you made a good living, you’ll be fine.

[Leslie]

They pick a few of your highest earning years to figure your income. I think it is 35 years.

But not sure.

[Leslie]

Be sure to enter Zero in the drop down field to see if it changes your benefit amount.

[Joe]

Don’t worry about it I retired at 50 and I saw a very little difference between that and waiting till full retirement age to stop working
however I would suggest you wait until least 65 before you start withdrawing if you can

[Aaron]

İf you stop working at 55, you can toss those expected amounts out the window.

They are meaningless unless you work at your current job up until those ages.

[Michelle]

From what I understand, SS is based on your best 35 years of service. I retired at 55, but have over 35 years of salary.

If you have less than 35 year, they average 0 for those years, so it cuts it down.

[Don]

Check where you are according to the bend points. After the second it pays less to keep working.

[David]

The difference is based on your work earning history. The highest earning 35 years are used.

I retired at 55 and the difference from working a few more years wasn’t significant (assuming I begin taking payments at the same age (62)).

It will vary by individual so use the calculator. Lastly, remember the value of your freedom/time when deciding to continue working.

Good luck.

[Ralph]

If you are not working from age 55, you will have zero’s as income which will reduce your allowed amount.

The estimates are shown assuming you are making that same amount of money for the years until then.

[Robert]

It goes off your 35 year average and what provisional income you make will determine how much tax you pay on SS.

Read the book: “The power of Zero”
-David Mcnight-

[Lauren]

The estimates of $2,680 and $4,054 likely assume you continue working at the same pay rate as now.

If you leave work 7 or more years sooner, you will have a lower contribution level and primary insurance amount.

If you go on the SSA website you can enter an option to stop working early and it should revise your estimate.

Or check out the website maximize my social security for tools to calculate your benefits

[Author]

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