How Social Security Retirement Benefits Are Calculated [3 Easy Steps]
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- Опубликовано: 5 сен 2024
- I’m going to show you how to calculate Social Security retirement benefits, and there are only THREE SIMPLE STEPS. This video will break down what is often thought of as a complex calculation into something that's much easier to understand.
Find your inflation factors
www.ssa.gov/oa...
Historical Bend Points
www.ssa.gov/oa...
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⚠️I am not an attorney, SSDI advocate, or affiliated with the Social Security Administration or any other entity of the US Federal Government. I am a practicing financial planner, but I’m not YOUR financial planner and since I don’t really know you, I can’t give you advice. So please don’t take this video as specific advice for your specific situation. Consult your own tax, legal and financial advisors. 🙇🙇🙇🙇🙇
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Not only a great easy-to-understand a complicated process, the editing was also well done, making the whole experience an awesome training session. Thanks for all your that you do to make this easier for people trying to wade thru our important years of life.
Just want to say thank you to Devin
I’ve been watching his videos for a little over a year and got in on 2 of his free work shops here on you RUclips. Very informative and easy to understand. Listening to him explain the social security system and how it works helped me immensely. Listen to Devin and watch his videos and you will find the answers to any question you may have. I receive a city pension and just got my 1st social security check. Life is good. I will continue to watch Devin on RUclips to keep up on any changes to social security
God bless you Devin
So kind of you!
@@DevinCarroll The blogs on your web site are very useful too if people don't mind reading. Do you have a video explaining why WEP and GPO are so unfair? For GPO they still receive more in total benefits they if both were on social security. Now I will admit the WEP rules are more complicated and that I don't totally understand them but isn't to reduce the increased social security benefit that people get that earned very little.
Thanks Devin. At 59 I am getting into the SS world now. These videos are great!
Devin,
Thank you for the explanation The animated videos and examples go a long way to helping us comprehend what is going on. Who would have thought that these "growing old" decisions would get more complicated just as our brains are ready to take life a little easier?
Understanding of the ins and outs of Social Security is what you offer, Peace of Mind is what you deliver...
Thanks so much for watching. I'm glad these videos are helpful. ☺️
Great simplified summary Devin. I wish I had viewed this when I First started trying to understand the calculations as it would have spared me considerable efforts plus trial and error through learning the process.Keep up the great service & thank you.
Thanks for watching!
~ This should be taught at the junior high level, so that young people can understand why it is so important to report all income earned, every year. Kids in a family business, don't always get full benefits later in life, because of under reporting or cash payments.Should one become disabled, the benefit can be affected as well.
Since we require children to have a SS card at age 5 to enter school and, most kids enter the workforce @ 15 or so, unless they are in a family business, the 35-40 yr highest earning yrs are important.
Younger people will have smaller incomes while still in school, but with college or a trade school complete they should be making decent money. The twenties should be to finish school and @ thirty a path should be clear.
The next 35 yrs go by very fast. Unless one wishes to work until they drop dead, planning should start early.....
Thanks for the video lesson on understanding a very complicated SS system. Your help is greatly appreciated.
Thanks for showing this again , better understanding it now Thanks Devin .
I followed your steps & came within a few dollars of what the SS site showed I was going to receive.
You're a genius....you helped me get a full mark here. Thanks
At 67 I already started taking my SS. So how can this video help me now? I thank you for your videos. Roger
Clear as mud!!!!
Great information, thank you Devin!
February is one year retirement anniversary for me. The best advice is to research and ask questions as you do with Devin. You really need to know what questions to ask and you need to prepare yourself for a whole new way of life. So many things to know. For example I thought everyone received their check the 1st or 3rd of the month. Wrong😳 you receive your check on. On a day pretty much the week of your birthday. My birthday is the 23rd and I receive my check the last Wednesday of the month.Plan, Plan, Plan.
Devin can you do a video on how the (windfall act) affects SS benefits,,, Be well out there!
Here's the shortcut to that. Watch this video again. At 2:26, simply replace the 90% with 40%. Then you have your benefit after the reduction for the WEP.
@@DevinCarroll Thank you,,,
Sir, I was injured while on a mission while in the army and given a medical retirement. The VA rated me 100% and when I tried to have the VA get me into school and retrained they said all I care about is outside work and with my injuries, I would not be able to do them nor a sitting job. They then advised me to get my social security disability which I did after three years and a lawyer even though the VA rated me 100%. The question I would like to ask is this? Will I continue to receive disability pay or will it be switched to the retirement rating after I reach the age limit? I am now 63! Thank you for all you do and tell in your videos. You have helped me in many areas! May our Heavenly FATHER bless you and your family always!
I am on SSDI. I was informed that it will be converted to regular retirement benefit on the day I reach retirement age.
Thank you for posting this!! It will help figure out what I want
You're so welcome!
I don't think I have seen it better explained.
Thanks for watching!
Great video..... my only problem is ....my SS will be reduced because of the government Windfall.
Simple question -- I'm 72 and still working self employed and the income continues to go up. Question is this -- does soc sec use my gross income on my sched C or my adjusted gross after deductions?
Is ssa calculations always correct.
super explanation
Hi Devin,
I have been watching your videos for a few years to understand more about retirement. I have a question for you regarding the Indexed earnings. I see SSA gives you your Earnings rounded to a dollar with no cents added.
So I noticed that when multiple a years earnings by the index factor is will include the cents using a spreadsheet to calculate my benefit.
As an example If I Take $16,692.00 and multiply it by the index factor of 4.3980709 It will come out to be $73,412.60
Will that round up to $73,413 or be counted as $74,312?
I wanted to make sure I have me spreadsheet do the correct rounding.
Thanks and keep the videos coming!
thank you!!
Devin, Great video! The monthly .667 accounts for the 8% annual increase past your FRA. What about inflation? Are you stuck at your FRA PIA until age 70, or will your PIA increase with inflation?
Good question. The annual COLA will be applied to your PIA at 62 and beyond.
@@DevinCarroll Is this true if I was born in 1954? That is a .8 factor each year after FRA. Isn't the lower factor for those born after 1960? Or am I mistaken?
@@garrycole8909 No...same increase factor. Just fewer months for the increases.
@@DevinCarroll Oh I get it now. For FRA = 66 (born in or before 1954) then 48 months x 0.667 = 32% maxout at 70; FRA (born in 1960) = 67 then 36 months x 0.667 = 24% maxout at 70. In between birth years 1954 - 1960 the calculation decrements by 2 months for each year added to birthday up to 1960. (eg. born in 1957 = 42 months x 0.667 = 28%)
Thanks for explaining Devon!
Devin, I turned 62 this year in 2021. How do I figure out what my social security would be if I retire at the end of 2021 but do NOT take social security until I reach my maximum age of retirment at 66 and 10 months? What this means is I would no longer be working so would no longer be contributing money into social security, but I would not apply and take social security until February of 2026. How do I calculate what I would get for social security at my full retirement age in this scenario?
HOW CAN I GET THE S.S.I.? AND WHAT AGE CAN I CAN APPLIED FOR S.S.I.?
Hi Devin, very very clear and most useful !! Question for you, I have years abroad in a country that has a totalization agreement with the US. Does that help in any way to increase the amount of retirement here in the US ?
The Inflation Factor in AIME seems confusing. When you look at your SS statement, is each years annual wages earned adjusted for inflation? In other words, if it shows I made 10,000 in 1987, is that what I actually made, or is that what I made plus the inflation factor?
Do I have to file taxes if I'm on ssi
@Juan Lopez why
@@jackieoneal4806, at least a couple of reasons: Prevents a criminal from filing a false return using your ID. Registers your existence as a live person, which might get you stimulus payments etc. sooner.
@@markjohnson8260 thanks 😊
I just retired from the military completing 21 years of service. Is that enough to qualify for any SS?
I live in a complex full of old people. Everyone I speak with is getting a monthly Federal welfare check. I mostly worked for cash. How can I collect a monthly welfare, SS, check?
Does this apply to SSI bisabiliys
Ok I have a question. I am US citizen born in 65, I have lived and worked in the US and in Canada. I know the US and Canada have a deal worked out where I will get credit for the money that was pain into what they call social insurance for the time I lived and worked in Canada on a work visa. I also know that as of now social security has no clue about what was paid in for me while I worked in Canada. I contacted them about this and was told those numbers would not be added in until I was actually ready to retire and start pulling Social security.
My question is how is the money that was paid in figured into the whole equation back here in the USA.
SS has a higher value PIA than my calculated PIA per these instructions. IS that normal?
ALSO, while working we were TAXED when contributing, now again SS PIA is taxed when we collect. That's double taxation which is not fair or right. LOL sorta
Does the AIME include wages earned before age 22?
Yes
In Step 2, is there an upper limit to the 15% band? 1/12th of the annual maximum of $137k (or whatever that year’s max is)?
Yes. Except the taxable maximum would be the ceiling in step one when they are indexing earnings. I should include that next time. 😀
Devine, my FRA according to the ss website is showing $183 more a month than the amount using this calculation. Which would you say is more accurate?
Does the PIA freeze at FRA? Or could it continue to grow if wages are greater than AIME before claiming? How about after claiming at 70?
No...the PIA never freezes. If earnings are higher than any of the years in the "high 35" your benefit will be recalculated.
Devin: Went through your process, but it came out way lower than what the social security is showing for my estimated benefits for this year in which I am going to retire in August. I added in the indexes for each year starting in 1985 which started my "highest earnings years", and took those (35) highest earnings years after that, divided by 420 to get my AIME, and then run your calculations. Am I missing something ?? Over $700.00 in difference from what the social security is showing for my retirement benefits starting in August..
I found my mistake. Sorry..
Good to hear. 🙂
1955
EXPLAIN PLEASE WHY WE ARE TAXED ON OUR SOCIAL SECURITY BENEFIT AMOUNT MONTHLY ?? I DO NOT GET THIS BEING TAXED ON THE BENEFIT AMOUNT, AND MEDICARE COST DEBITED OUT.
The government decided to tax Social Security. They started at first with a formula that only taxed, at most, 50% of your benefits. And they set the bar really high (at the time), so only a few rich people would have to pay. But they did not adjust the formula for inflation and later on they added another tier to the formula so that if your income was high enough, up to 85% of your Social Security could be taxed. This was done by both political parties so thank your politicians if you are having to pay tax on your Social Security.
SSI SHOULD STEP UP TOO AND DO WHAT SNAP DOES, LET YOU RECIEVE ALL OF YOUR BENEFITS UNTIL THE END OF THE PANDEMIC!!! WHO AGREES????
This will help benefit everyone and businesses will get more money because WE GET MORE MONEY, this will help the economy crisis get out of debt in 2021
WHAT DO WE DO WHEN THEY DO NOT GIVE US A HISTORY REPORT ??
What if i worked only 5 years
Should have been more examples and a bit slower showing more hypotheticals.
Hello Devin
Can you please help me I just want to know if my 38 year old son who was born disabled he is 9n ssi I have got sick I collect my ssdi can you please tell me is there a way he can collect off my ssdi I really need the medical part he needs medicine to stay alive on Medicaid you can only see a doctor 12 times a year and that's all doctor's combined he has so many I have to pay for medicine that they will not cover he is on a blood thinner he needs his PTINR done at least one time a week I could go on and on 😔😔😔
But I like to know can he be put on my social security he is living with me I try my best to take care of him 😔
People are always talking about how Social Security will be insolvent by 2035 if the Government doesn't fix it, but I also question the impact of all the elderly that die on a daily basis collecting social security? I also question the impact of all the people that died with covid 19 that contributed to Social Security. That's a lot of surplus for Social Security, Why doesn't anyone talk about that?
Tony, I think "all that surplus" is offset by all of the people who are out of work, not currently paying into Social Security. It is a given that the vast majority of Covid-19 deaths were seniors, thus reducing the draw on the Social Security system. You also should consider that if a significant number of people are not working for an extended period of time. . .that may very well affect their AIME meaning that their average income for the 35 year period will likely be reduced so their monthly Social Security benefit will also be reduced for their retirement years. I think we are all hurting a little bit from these trying times in our history.
june 2 1950
It made me depressed
Correction. To get inflation figures you enter the year you turn 62 not your date of birth.
😁✌👌👍🖖 😎
Use real numbers