Author Topic: Social Security Income Question  (Read 1718 times)

socialforums2019

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Social Security Income Question
« on: December 01, 2019, 07:42:31 AM »
When I log into SS website, it see estimated monthly retirement SS income.  Still early in my career (another 25+ years working) but if I were to stop working today, will that estimated monthly retirement income decrease over time or just stay constant?

terran

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Re: Social Security Income Question
« Reply #1 on: December 01, 2019, 08:01:11 AM »
No, it assumes you continue to earn the same amount (adjusted for inflation) that was last reported to the Social Security Administration until you start collecting benefits. If you stop working before that your benefit will be lower (unless you've already worked 35 years at a higher salary than the most recently reported salary).

mistymoney

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Re: Social Security Income Question
« Reply #2 on: December 01, 2019, 08:22:57 AM »
yeah - it can be deceptive!

I will they had a table for payments if you never work again, so you could know!

spartana

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Re: Social Security Income Question
« Reply #3 on: December 01, 2019, 08:42:08 AM »
Once you quit working the earned income part of your SS starts to be zeros. If you have a lot of zero earning years as I do, I assume thet use that to project your future income and thus you the monthly benefit amount you will be entitled too. This is what mine seems to do - assume zero earnings for future years based on having zero earnings for my past years. It seems the projected benefit amount SS said I'm going to be entitled to at FRA did that too

SwordGuy

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Re: Social Security Income Question
« Reply #4 on: December 01, 2019, 08:53:53 AM »
There is a manual benefits calculator somewhere on the SS gov website.    You can fill in your work history and put zeroes in the slots after your target FIRE date.


terran

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Re: Social Security Income Question
« Reply #5 on: December 01, 2019, 08:55:24 AM »
Once you quit working the earned income part of your SS starts to be zeros. If you have a lot of zero earning years as I do, I assume thet use that to project your future income and thus you the monthly benefit amount you will be entitled too. This is what mine seems to do - assume zero earnings for future years based on having zero earnings for my past years. It seems the projected benefit amount SS said I'm going to be entitled to at FRA did that too

Yes, yours should be accurate (assuming the formulas don't change) because your last reported year had $0 earnings, so they assume that will continue until you start collecting.

jeroly

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Re: Social Security Income Question
« Reply #6 on: December 01, 2019, 09:01:21 AM »
Once you quit working the earned income part of your SS starts to be zeros. If you have a lot of zero earning years as I do, I assume thet use that to project your future income and thus you the monthly benefit amount you will be entitled too. This is what mine seems to do - assume zero earnings for future years based on having zero earnings for my past years. It seems the projected benefit amount SS said I'm going to be entitled to at FRA did that too
There is a calculator on the web that lets you enter future earnings, which you can enter zeros for if you like.  I don't recall the URL ATM...

MDM

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Re: Social Security Income Question
« Reply #7 on: December 01, 2019, 03:53:23 PM »
yeah - it can be deceptive!

I will they had a table for payments if you never work again, so you could know!
A couple of spreadsheets and a web tool that work well for calculating an individual's benefit:
- The 'SocialSecurity' tab of the case study spreadsheet.
- The Downloadable Social Security Benefit Estimator (repost) - Bogleheads.org.
 - Social Security Calculator
A web tool that evaluates SS benefit start dates  - particularly useful for a couple:
Open Social Security: Free, Open-Source Social Security Calculator

And the farther away one is from taking SS, the more grains of salt that should be added to any such estimate.

Monkey Uncle

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Re: Social Security Income Question
« Reply #8 on: December 03, 2019, 07:11:58 AM »
The SS site's Retirement Estimator will allow you to enter the age at which you expect to stop working and will calculate a benefit based on your existing and projected earnings record up to that age.

https://www.ssa.gov/benefits/retirement/estimator.html

dodojojo

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Re: Social Security Income Question
« Reply #9 on: December 03, 2019, 08:49:45 AM »
The SS site's Retirement Estimator will allow you to enter the age at which you expect to stop working and will calculate a benefit based on your existing and projected earnings record up to that age.

https://www.ssa.gov/benefits/retirement/estimator.html

Anyone else having problems accessing the calculator?  I'm receiving the following message.  I have an SS online account that I can access.

Forbidden
Unfortunately, you do not have access to this service. Please check your url for errors and try again.

If you need immediate assistance: please contact us

dodojojo

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Re: Social Security Income Question
« Reply #10 on: December 03, 2019, 08:56:16 AM »

Monkey Uncle

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Re: Social Security Income Question
« Reply #11 on: December 03, 2019, 09:24:57 AM »
The SS site's Retirement Estimator will allow you to enter the age at which you expect to stop working and will calculate a benefit based on your existing and projected earnings record up to that age.

https://www.ssa.gov/benefits/retirement/estimator.html

Anyone else having problems accessing the calculator?  I'm receiving the following message.  I have an SS online account that I can access.

Forbidden
Unfortunately, you do not have access to this service. Please check your url for errors and try again.

If you need immediate assistance: please contact us

I just ran through it without getting any errors.

spartana

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Re: Social Security Income Question
« Reply #12 on: December 03, 2019, 10:04:23 AM »
Once you quit working the earned income part of your SS starts to be zeros. If you have a lot of zero earning years as I do, I assume thet use that to project your future income and thus you the monthly benefit amount you will be entitled too. This is what mine seems to do - assume zero earnings for future years based on having zero earnings for my past years. It seems the projected benefit amount SS said I'm going to be entitled to at FRA did that too
There is a calculator on the web that lets you enter future earnings, which you can enter zeros for if you like.  I don't recall the URL ATM...
That's what I did and just put all zeros into it (haven't paid into SS since age 30 so that's a lot of zeros!) and it allowed me to get an estimate based on different retirement ages. I'm also subject to the WEP reduction (Windfall Elminiation Provision for those who paid into a Gov pension plan instead of SS) to any SS benefit I get but will have to use the SS WEP calculator to figure that amount out.

Bernard

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Re: Social Security Income Question
« Reply #13 on: December 03, 2019, 01:25:59 PM »
I'm having problems with the SSA Web site for a long time. I fondly remember the days when I got a statement in the mail every year. Now I have to enter a password that I don't remember. I don't remember it because the requirements for the password were so out of this world, that I can't even guess. Not only that, but 3 tries and access is blocked.

I requested a new password but never received the promised letter in the mail. I requested a statement in writing, but never received it. Guess I have to go to the nearest SSA office to sort that out.

Anyway, the linked calculator is fabulous. But how do I determine my income if I filed jointly with my wife? We have an AGI, but it's for both of us. So what number do I use for the calculator? After deductions and IRAs and 401Ks, there's not a substantial amount left.

spartana

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Re: Social Security Income Question
« Reply #14 on: December 03, 2019, 02:00:56 PM »
I think SS just does your solo income. When I looked at my online statement it didn't include ex-DHs earned income at all. It just shows your gross income. I assume you get an income statement (w2 or whatever) showing your gross each year. The other deductions don t appear to count with SS when they calculate your income on the online calculator I used.

ETA: If a spouse or ex-spouse is applying on your record, then SS still figures them separately then adds in the difference to get the higher amount.
« Last Edit: December 03, 2019, 02:05:04 PM by spartana »

MDM

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Re: Social Security Income Question
« Reply #15 on: December 03, 2019, 02:01:36 PM »
But how do I determine my income if I filed jointly with my wife? We have an AGI, but it's for both of us. So what number do I use for the calculator? After deductions and IRAs and 401Ks, there's not a substantial amount left.
Use the "Social security wages" (box 3 of https://www.irs.gov/pub/irs-pdf/fw2.pdf).  That's all, unless you have/had self-employment income.