How To Calculate Social Security Benefits [3 Easy Steps]
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- Опубликовано: 3 авг 2024
- In this video I want to show you how to easily calculate your Social Security benefit without a fancy calculator, software or help from someone who doesn’t really care if your information they give you is correct or not (like you may get at the Social Security Administration). When we finish, you’ll know how to do this calculation on your own in just a few simple steps.
So why would you need to know how to do this calculation on your own? It’s important for a few reasons. First, it never hurts to understand the mechanics behind an income stream that’ll probably be a large part of your overall retirement income. Second, the SSA makes projections about your future income as part of your benefits estimate. On the benefits statement they say plainly, “we assume your earnings will continue at the same level until your retirement age and if they are different, your benefit will not match the estimate” AND “we can’t provide your actual benefit amount until you apply for benefits.” This all means that if your earnings are different than their projections, your benefit will not match the estimate. So, understanding how to do this calculation is especially important if you plan to retire early or later than “normal” or if you have a significant earnings change in the last few years of working.
To do this calculation, there are only three steps and each has some sub-steps as well. First, you’ll need to find your Average Indexed Monthly Earnings, or AIME. Then you apply that AIME to the benefit formula and then adjust for filing age.
Don’t worry…I’ll walk you carefully through each step so it’ll be clear. Don’t hesitate to hit pause while you’re compiling some of the information or completing a calculation.
❗Resources Mentioned in This Video:
➡️Online SSA Account socialsecurty.gov/myaccount
➡️Indexing Factors www.ssa.gov/oact/cola/awifact... www.ssa.gov/oact/cola/awifact...
➡️Current & Historical Bend Points www.ssa.gov/oact/cola/bendpoi...
➡️Blueprint socialsecurityintelligence.co...
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✔How to Coordinate Your Social Security Filing Decision with Your Other Assets & Income for a Tax Efficient Distribution Strategy
✔Why This Is The Biggest Decision of Your Retirement
Access the workshop today at this link
www.devincarroll.com/SSessent...
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⭐⚠️⭐Please read this⭐⚠️⭐
⚠️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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This is the best RUclips video I have ever seen. I am turning Full Retirement Age in 3 weeks so I needed to know what my Social Security benefits will be. Thanks a million. Boogie in Florida
I've run into some of these challenges when planning for clients. Devin is really a great resource.
This was an awesome video Mr. Devin, Thanks for making my day.
I’m ready for my retirement planning final tomorrow!!! Thanks,!
Thank you Mr. Carroll, this is helping me a great deal.
Great information Devin. Thanks for posting. About to hit 63 and I'm examining my options.
Liked and subscribed.
Great info. Im almost 60 and need to get this sorted out. Your advice on checking my earning record really helped me as they had gotten mine wrong.
Unfortunately that happens fairly often. So glad you checked it!
I'm greatful for your video and sharing your knowledge and expertise with the public
You made my life so much simple I’m retiring before 50, so blessed to be able to do it.
Your cool, must be nice to have shit handed to you
Thank you, Devin, for a good educational video! You have made something "mysterious" to me understandable.
Super excellent video. Thanks. Will share.
Very helpful. Thank you.
High income earners would need to cap the indexed wage to maximum taxable for the year for the correct benefit amount. If the annual income is more that taxable maximum then these calculations will show a higher than expected social security benefit. In 2022, the maximum benefit is $3,240 per month for someone who files at full retirement age (FRA) at age 66. But $4,194 is the absolute highest benefit for those who qualify and delay claiming until age 70. Thank you for the video.
Great video Devin. Thanks for the easy, concise instructions. Following your instructions, I was able to build a spreadsheet and process 47 years of earnings very quickly. YOU ROCK SIR!
Glad it helped! You may also want to cross check your spreadsheet with my new calculator that allows you to pout in your historical AND projected earnings. socialsecurityintelligence.com/calculators/
@@DevinCarroll Is this calculator result showing future value or present day value? My calculations using your video are showing significantly different numbers (like $1000 difference per month!).
This video was very helpful this guy awesome
Great information. Thanks!
Great information!
Fantastic information! Thank you.
This is great info...Devin, how do you calculate children's benefits and your non-working wife as their care taker? I've called the SSA many times but you get different answers. Thank you for your reply!
Thanks again.
Very intelligent! You broke it downl. Once i get all the necessary information you shared. Would SSA approved my factual work and correction? I feel like they won't even know where to start with this great information you shared.
@Devin Carroll, this is great information. I used all the artifacts you mentioned in this video, including download of your spreadsheet. After applying a 4% inflation rate in your bend point calculator, I got a way better number for my social security monthly payment amount that the estimated amount on my social security annual statement. I will be 62 in 2022, so I think the calculations should be correct. Would like to know your thoughts if possible before I become over optimistic 🙏🏼☮️
Very well explained, thank you Mr.Devin Carroll.i'm seeing you from chicago.
Thanks for watching!
I love to know things about how to calculate money in any compains or offices like Banks and others is my great wish. In this case the first step In social Security Index. Like your monthly Earnings at the age of 65 with all the income that are coming to their porkets should be claculated. I like your steps of explanations. Thanks so much.
Thanks Devin
Devin I went out on disability in 2008 I’ll soon be 66 will my retirement go up at 67 thank you . 👍
My dear l pray yo meet you one day when l will be due for my Retairment, well God Bless you for your good job well done. Thank you very much
Very educational in terms of the calculation method. I am more interested in your example spreadsheet shown in the video. Could you please consider to share the example spreadsheet? I want to use the example to build my own spreadsheet to work on my SS benefit. Thanks again.
Hi Devin! Thank you for the info. I used the calculation provided and my FRA amount was about $300 higher than the SS estimate.
I used the average of my prior year and current year salary as my annual earnings in all future years until FRA
I did not index earnings beyond age 59
I used the current year bend points without increasing them from the 2023 bend points of $1,115 and $6,721
Any idea where I may be going wrong?
Thanks!
Hello. How does the COLA figure in. ? Thank you for a wonderful explanation.
Thank you so much for this presentation. It was just the information I was looking for. Fortunately, this was perfect for me because I will be 62 this year, so I didn’t have to calculate the bend points, since your example had them. When I plug in the numbers to sum the highest 35 years, my total indexed earnings were $9,484.75 (more than the example used). Using the bend point to determine my monthly eligibility, my maximum I could draw is $2,344.92.
That is a huge discrepancy from what my estimated earning statement says. According to the estimated benefit, it states that I would draw $1,736 a month at FRA. That’s a big difference. How should I proceed in finding more accurate information?
Thank you for providing this information. You are a great presenter!
Stay tuned to my channel. I have a video coming out soon that'll discuss why you can't rely on your social security statement.
I'm in the same boat! I have NO clue how I got indexed earnings of 7963 when I cap out around 78K a year in income at age 62...if I multiple 7963x12 that equels more than my top salary??? How is this possible---what am I missing?
Yours is by far the clearest and best explanation I have heard. Thank you so very much. I do have a question. What happens to contributions after 62, do they fall under the highest 35 years calculations?
After age 60, income is no longer indexed, but it can count as a part of your 35 highest years.
@@1134Bigguy Thank you.
So are the bend points locked once you’ve established what they are at 62? Is the benefit amount inflated or current $? The SS website does both and it recognized that I have no earnings over next 5 years ( I think 😉) therefore my top 35 indexed earnings are established. Please advise. Thanks !!!! This is very helpful
Great stuff! I put together a spreadsheet based on the information you provided. I found that it gave me an estimate much higher than what my SS statement shows. Do you have a sample sheet we could download to compare? Not sure what the differences are. Thanks.
I don't...but a sample sheet is a good idea. I may try to work on that.
The difference is that the SSA does not account for inflation in your future earnings. This is not just the COLA, this is the wage growth that drives the entire formula. For example, a 50 year old is having their benefit calculated with TODAYS formula when it is clear the formula changes nearly every year with changes to the average wage index.
Devon,
From age 62 to FRA, "My Social Security" (eStatements) showed a monthly increase. It was a little bit exciting to see it grow. However, after FRA, the monthly estimated amount stays the same all year long, with a possible increase in December (if there is a COLA), then again in January where either it is the fabled 8% DRC, or it is changed due to an old year dropping off to be replaced with a much higher current year. I suspect it is the latter of these as it is never as high as 8%. So, my question is, "When are the DRC calculated and added in?" Thank you - Great Videos!
The method used to add the delayed retirement credits is interesting. If you file early, the reductions are immediate. If you file between your FRA and age 70, the increases aren't applied until the January after the year you file. The only exception is if you file at 70. Good question! I probably need to do a video on this.
@@DevinCarroll Thank you!
I'm a year past FRA. If I file now my benefit amount will be 8% less than it should be till Next January ?.@@DevinCarroll
Sorry if this has already been asked-I didn’t read all 134 comments-I have figured my PIA. I am retiring at 59 and will not take Social Security until 67. Will my PIA increase due to COLA’s for the next 8 years even though I’m not receiving the benefit or will I still get what I estimated originally? Thanks for the terrific work you do.
o my lord, i love money math and numbers, but it's gone take me a while to comprehend this. this looks complex, but we thank you for this information.
Thank you, Devin - I did all of the calculations for the AIME and the PIA - am I correct that in the second part of the PIA formula, if my AIME amount is less than the higher SSA published bend point for the year 2015, I use my particular AIME value - not the upper end of the range published by SSA. For example, as I calculate it, my AIME is $3327.00 - So, am I correct that the PIA formula for me is
.9(826) + .32(3327 - 826) + .15(0) = $743.40 + $800.32 (utilizing 2015 bend points)
1543.00 PIA
Just bought your book off Amazon... thanks
Please send me the SS benefits calculation. Thank you .
So I’ve enjoyed your videos and really just have one question to see if I am properly grasping things. If I am at age 60 and ssa has calculated the AIME aren’t things baked in the cake with regard to any future years of work ie- there is no future substitution of a larger earning year for a smaller one? In other words if I’m single at that point it purely becomes a question of timing what my monthly benefit will be- when I file to receive as opposed to my future earnings having any further effect on that benefit amount?
If one of your future years is greater than one of the 35 inflation-adjusted years used in the formula, it will replace and recalculate.
How does this calculated amount compare to the estimate the SSA mails to us (assuming they have our work history correct)?
I was quoted the amount I would receive at full retirement age several years before I was full retirement age. I have been working full time and still do , so I don’t understand how the SS Admin. Is correct as my income has increased yearly?
Do you have a video that shows how to calculate a potential WEP reduction??
I did this twice and the SSA shows my "age 66, your payment would be about..1,606 a month and I come up with $1435 doing your calculations. I turn 67 in this year in July (2019) and I got the index figures and Bend points for 2014. I just formatted the numbers to 2 decimal places so I could see an anomaly and nothing. What should I do next? Thanks.
Great explanation Devin. I'm assuming that all benefit estimates are in today's dollars. How do you convert to actual dollars?
I actually have a similar question. I'm 53 now and using this formula calculate my PIA at 3255.00. But i'm not sure if those are in 2019 dollars or in 2033 dollars.
The estimates are in today's dollars. Kinda...
The estimate provided by the SSA uses today's dollars. If you use that estimate, you'll need to increase your PIA to account for inflation. If you are doing the calculator manually, as illustrated in this video, it should give you the future dollar calculation.
I am having trouble finding a job and am thinking of starting to collect SS. If I start collecting SS at 63 and then find a job, I know I have to pay some amount if I go over so much a year in additional income. Will be monthly benefits increase if I get a job that pays more than some of the 35 years used for calculating my current benefits ?
Is social security taken out of a retirement pension if you have one?
So to summarize a 13 minute video: Just take an average of your top 35 years salary and multiply by about about 30% for full retirement age. The 30% factor varies from year to year depending on historic inflation.
No. If you just averaged the top 35 years without multiplying by the indexing factor for each year first you'd drastically underestimate your AIME.
If you derived the proper AIME but simply multiplied it by 30% you'd way underestimate the payment at full retirement age for low wage earners and overestimate it for high wage earners.
Hi, sorry if this was covered. If I am planning to file at 62.5 months and my full retirement is 66.6 (1957), would I pay the additional 5% penalty for the entire year because I’m not within three years of retirement?
Hi Devon,
My eligible retirement age of 62 was
2016. I worked full time until November of 2021. I see that the indexing factor for Me at 60 and 61
is 1.0000000. Is the I.F. the same
for My age up to 67?
My husband and I both worked under SS for 22-25 years then he moved to Railroad and will retire w 20 years and I will retire under psrs w full benefits. Any suggestions s who can provide us w good advice. We have 3 yrs or 64 & 62 yrs old but are in the planning stage. The RR doesnt provide the best information or advice
the SS staement has 2 earning numbers: Taxed Social Security Earnings and Taxed Medicare Earnings
- which one do u use in this calculation?? (the Taxed Medicare Earnings
??)
I will be 62 in 2023, I ran the index factors today 5/29/21. Will these factors change next year or definitely what mine will be?
If I understand correctly social security takes the highest 35 years of earnings. If you retire at 62 and have at least 35 years of earnings but don't take SS until FRA the will base your benefits on the 35 years you worked.
Good points to get a closer estimate but what about how to calculate the new 5.9% COLA that just came out? Can we take our monthly estimate and add the 5.9% or do the calculations change in the formula you gave us? As an example, if I retired lets say in January. My current monthly would be approximately $1856 per estimator calculator. Because this is calculated prior to January 1, would it be assumed that I could add 5.9% and see $1965?
The 5.9% applies only if you are currently receiving benefits. The February check will show the increase
David I'm 63, pretty healthy and working. I'd like to keep working when I retire. How much can I earn, and draw SSI at age 67, or should I wait till age 70 if I am able? My current job pays well I am living on almost 2,500 a month. Love your videos!
Alan Grossheim I think he said that after FRA , you can earn an unlimited amount of income without affecting your SS benefits.
@@anthonyp8291 thank you
Can I do still do my bend points after receiving benefits for several years? Just found out about bend points...
FYI - I have used Devin's info in this video and on his website and I couldn't figure out why the bend points where so different from what actually transpired from 2023 to 2024. The SSA has published the 2024 bend points and they are much higher than either the 2%, 3% or 4% estimated bend points from Devin's calculator. That's because there was about a 5.3% jump from 2023 to 2024! It was even higher from 2022 to 2023. So, I ran some historical numbers. The bend points averaged 3.49% annual increases over the past 30 years of published bend points (1995 through 2024) and they average 4.28% from 1980 through 2024. If you only run the averages through 2022, which excludes the last two years of very high inflation, you'll still get 3.31% for 30 years (1993 through 2022) or 4.15% for the 1980 through 2022 period.
Hello Devin, This is a great video. Question, I have 40 years earned and plan to stop working at 62. No earnings next 5 years, just live off savings and then file at 67. Will the 35 highest years of Index Earnings have to be the last 35 highest years (including 5 years of 0 earnings) or just simply the 35 highest year earnings?
Why would you wait five years to start collecting, you will never make up the difference that you would be collecting now for those five years you did not collect. If you stopped working you should have taken it right at the age of 62
So what about when they keep charging you for overpayment I am still paying for exhusband 6 years and also paying every year I do the polls so do you think I should just retire now or what can you tell me what happens then.
Is this the actual amount we are getting or estimated?
Totally different (now)!!!!!!!!!
I ran the calculation assuming I'll retire at 67 (current plan).
My number was about 12% higher than that which i just pulled off SSA site, and our assumptions were nearly exact for future earnings.
A question someone posted here some time ago might explain it.
Do earnings beyond 62 count when finding AIME?
Your earnings do count beyond 62. One of the biggest problems with the number on the SSA site is that they do not account for YOUR future earnings increasing OR the bend point formula increasing. When you used my method, it did account for an increasing bend point.
@@DevinCarroll what does a person do if their retirement calculation differs from the SSA's calculation and the person's earnings record is accurate?
Meaning the only dispute is with the SSA's calculation.
How does the retiree dispute it with the SSA? Is it a prolonged process? Should the person accept their Soc. Sec. Retirement benefits, albeit an incorrect amount, while disputing the inaccuracy with the SSA calculation??
Can or are you able to talk about the windfall calculation that SS uses when you have a pension fund? My husband lost 2/3 of his social security payments.
belah33 I released a video on this topic not long ago. You can find it at ruclips.net/video/DE4UMm1o29o/видео.html.
If I work a total of 35 years but there were years in between that I didn't work do those years not work count against me? Also if I stop working at 61 and don't collec social securityt till 64 will those 3 years not working count against the formula to determine highest paid years?
Nothing counts "against" you. If you worked less than 35 years (as did my wife) you will get a reduced benefit because you are working with a smaller number at the beginning of the calculation. If this is the case (your earnings record is on ss.gov) it would really be good if you could keep working. Not only would your SS benefit increase substantially but your financial picture should get better- less debt, more savings. But even if you stop working your SS benefit will continue to grow if you wait to collect, just not as much as if you had kept in the workforce.
What about the Cola if your are over 62? Is that added into the online estimate or do you add it?
If you do this calculation at age 62 and have no more earnings between age 62 and full retirement age, does that change your PIA amount at full retirement age or is it pretty much set at your SS earnings up to age 62 (other than COI adjustments)? More specifically, I'll likely have social security earnings in the four years following age 62 that will be higher than some of the years used in the calculation at age 62 and would make the average higher if the PIA was calculated at age 65. Is that not how it works?
Hey Devin, I calculated my PIA they way you described and my calculation is $500 per month higher than what SS.gov shows. Any ideas why? I have double and triple checked my income/ index factors and bend points. Thanks Scott
Hi Scott! How old are you? If you are several years away from your Full Retirement Age the methodology of the SSA could be the culprit. They take your last two years of earnings and assume that those exact earnings will continue. If your earnings increase, as earnings typically do, you will have a higher AIME. Additionally, the SSA doesn't include inflation in their estimates despite the fact that inflation will increase your benefit amount. I'd love to get this figured out with you so lets keep the conversation going!
I’m self employed, do i need to sign up now if i’m not retired yet?
This is fantastic! Running these calculations, I show my payout is more than the current max allowed payment for FRA using 2% inflation. Can I assume 2% inflation on the current 3,113 max payout and therefore by 2037, the max payout would be 4,358?
Can I also find this portion of information in your book?
This was great but I could never get it to come out what I was told when I called SS
My FRA is this month. So I am 66.5 years old now. But if I do the math.... it is NOT 8% higher for that first year after FRA.
For those first 6 months after my FRA date of 8/23, the increase after 6 months is actually around 3.35% increase. Then the second 6 months (starting in February Y2024), will be a 4% increase.
So in my case, waiting a year after my FRA this month, is less than 8% increase.
I am 63 and plan on taking SS at FRA (67). I went to the SS website and it gives me my estimate at the 3 points. Does this estimate include the COLA's between 62 and 67 or does the monthly payouts have the COLA go back to age 62 through 67 and recalculate this estimate of my SS when I go to draw SS? In otherwards, are the estimates I am seeing on the SS website updated each year on the SS website after age 62 or do I have to wait until a final calculation is done to take into account COLA's?
When doing my bin points I quit paying Social Security when I was turned 50 I went to work for a place to do not pay Social Security so last time I paid was 2013 is that when I figure my been points or I’m still working but I’m not paying Social Security do I figure my Ben points up the current year I’m trying 22?
So, if I turn 66 on June 17- I should wait & apply on June 18th to increase my payment?
Every month I wait my benefit goes up about $16.00. Or $200.00 a year. If you don't NEED the money waiting is going to be beneficial to your wealth in retirement.
Is there such a thing as maximum monthly benefits from the SSA , no matter what your earnings were?
Yes there is. In fact, I'm working on a video that'll cover that topic. Stay tuned!
@@DevinCarroll a tying yet?
I am trying to decipher the reduction per year for retiring early. My FRA is 67. If I go at 62 is 30% (5% each for 62 and 63, total 10% plus 6.66 each for 64, 65, 66, total of 20%)?
What if a person is disabled, do they add zeros for the years they were unable to work due to a disability? And if not, how/doesthis change the formula?
I have a couple of questions, my step dad was fully vested in November 1974 and he had group employee benefits , whole life Inc health Inc and both my mother and myself where always covered myself from 1959 until his passing December 6 1974 my dad also received 50 shares of southern Pacific stock before they went on the stock exchange for public purchase my mother and I where both beneficiaries my mother first myself second there is also a last will and testament from both my mother and Dad my dad‘s pension was a private pension there is still $111,000,00 remaining of which they’re saying I have no right to but I happen to know that I do the union rep that signed as a witness of my dad‘s last will and testament has passed away as well as the other member of the union that was there in the office as well,my mother has passed away, as well as my uncle Harold whiting, any suggestions would be greatly appreciated thank you.
If I retire at 63, but delay taking my social security benefits till age 70, do I earn the delayed retirement credits? Or do you have to work to your full retirement age to qualify for the credits?
You earn the credits until you retire or reach age 70.
Hello,need some advice, I stop working at 57 1/2 I’ve been working since I was 18-2 years of unemployment that comes out to 39 years I haven’t been back to work at all I’m coming to 62 years old , is your calculation or you’re thinking I should go back to work too I’m 67 or just file at 62 and do the calculations
I am a few years past age 62. How do you handle COLA adjustments in these calculations? Is there a chart for what these have been in the past?
Thanks.
I generally use 2% as a future COLA. The chart of actual COLAs can be found at www.ssa.gov/oact/cola/colaseries.html
@@DevinCarroll
Thanks. I had looked for that chart but couldn't find it. With those COLA numbers, I calculate almost exactly what they estimate ($1 off).
Thanks for all your videos. I always learn a lot.
How to calculate spouse SS income ? Some wives do not work, so how are they paid? Some do work but made less than husband so how do they can pay? Is it based on the higher of the two? What if one passed away what will the window get? Can you make another clip covering spouse calculation? Thanks,
My FRA is 66yrs 8mos. To get the full benefit of waiting until 70yrs and get the 32% bonus, is it actually 70yrs 8mos?
If you continue to work past FRA, does your income still factor in as one of the
highest 35 years
Yes but indexing stops at at 62. If you had some loser years or zero years or don't have 35 years of earnings history, continuing to work, especially if your income is high (not WalMart greeter) it will make a big difference. Hundreds. My wife lost her job at 63 and did not have a good work history. Her estimated benefit at 70 went from $2100.00 to $1850.00. I lost my job at 64 and my estimate at 70 did not change much as I have 40 good years in my work history.
Super informative video. Do I turn 60 one day after my birthdate of 11/04/1959? Are the income of social security taxable. Thank you 🙏
Drew as @age 67 but continued working part up until 2019 went full time again. Now at 70 I want to retire but the income for the past 2 years higher than any of my previous years. How do we calculate for current income?
Income from age 60 and after is just regular income, without being indexed.
I have a question for you whenever you look on your Social Security account online it shows your estimated amount that you will receive when you retire if you continue to make this amount which is the amount that you made last year are they talking about early retirement or full retirement because they don’t say they just say this is the amount you will receive when you retire so tell me if they mean early retirement 62 or full retirement 67
The estimate is for full retirement age. 67 for me
The projected income is used in the PIA formula which is your full retirement age.
Dovearnings after 62 matter?
Great video and very helpful! I'm 48 and the online calculator shows 2400.00. Using the manual calculator I come up with 3500.00 stopping work at 55 and waiting to take SS at 67. Does this sound accurate? I used 2% on the PIA calculator...how would I revert the 3500.00 back to today's dollars? Thanks for all your help!
When you used the online calculator did you check "Today's Dollars" in the selection?
I should have clarified. I wasn't using the calculator on the social security website. It was the "Estimated Benefits" portion on the site when logged in.
When I forcast all my retirement stuff I bring it back to today's dollars to stay consistant. I think bringing the 3500.00 back to today's dollars would be approx 2200.00 from what I can tell. Which sounds accurate.since the website shows 2400.00 figuring working till retirement age vs 55.
What if I was self employed, but owned the business and the business paid me, not as an employee (no with holdings for SS) but month payout from the business? And I paid Federal tax on those earnings?
Paul's CCNA Only earnings where you paid SS taxes will be counted in the formula.
Ummm... typo in the social security website link?
Does Capitol gains from a property sell count as SS income
No only wages. You don't pay SS tax on capitol gains do you?
where are the credits earned so far? Or, where can I see how many credits I have? I can't seem to find that information at the Social Security website. Does anyone know?
You'll need to create a free SSA account. Once you login, you'll see all of that information.
When you take your early retirement benefits at 62, there is a limit on your earnings before SSA witholds a portion of your benefits.
If I have RENTAL INCOME. Does that count as part of that limit of income?
I can't find the information.
Can someone who knows, please comment?
It would be better to simplify the system. It would also be a big help if the government would use the top 30 years, instead of 35. Low earning years can really bring your average way down.
Back in the year 1978, 1978 & 1980 It is showing no income for those years, My employer must have not paid in to the system back then. I do not have W-2's any more, or any proof of income although I was working full time. It was very small income, not part of the 35 highest years, Should I be concerned? Will this make a difference?
Would it be part of the highest 35 years after indexing for inflation?
No it was much lower income back then real close to min wage. Income started going up after 1981.
@@DevinCarroll I'm having exactly the same problem as Chris Shea. I'm 66 and planning to go to the SS office this week to apply for benefits. I switched employers in 1985 (I was a University professor), but my SS earnings my SS statement records 0 earnings for 1986-1989! SS does not allow you to correct the earning record beyond the past 3 years. I don't have W2 forms (the IRS doesn't keep tax records that far back), nor I suspect will I be able to get records from my University for that far back. Neither do I recall what I earned during those years (who does?), so I can't use the Request For Corrected Earnings form. My recorded income after 1989 bounces up and down on the SS statement. I retired in 2014,
but the SSS still records me as working after that, up to the present. They have my income for that year listed incorrectly ($117,000 vs the correct $109,000, as listed on my W-2 for that year). Sorry for such a long reply, but I'm desperater. I suspect I'm screwed 6 ways from Sunday. CAN YOU PLEASE HELP CHRIS AND I??
So how bad can high income people get screwed by that 15% bend point. What is the max PIA that can be in that third bend that we are paying full price on. I think this is important to explain for those that think the “rich” don’t pay their fair share. Be good to see how much money can be in that third 15% Replacement.