Question on Social Security Payment Amount?

[littlepixy]

My retirement year is 67 as I'm a 1961 Baby. Question is if I stop working at 62, but don't apply for benefits till I'm 67 - will this affect my benefits amount at all since SS will be looking ay my lifetime work record and it will show I haven't worked in the past 5 years?

[cronewitch]

They average your highest earning years I think it is 35 years. So if you work full time from the time you are young it won't mean much. The weight the years for inflation so if you say earned half the max every year the early years will still look good.

It is also weighted to pay the poor a higher amount so it doesn't make as much difference as you might think.

SSA.GOV has all the information.

[littlepixy]

Thanks, Crone. So, if they look back at your work history (mine starts at 1976 & will hopefully end 2023) then they pick out the 35 years that had the highest earning and base your benefit amount off that? Okay, then, when I apply for benefits at age 67 the fact that I didn't have any income the past 5 years is a moot point, because those 5 years won't fall into 'highest 35 years' category.

[moneywhisperer]

pixy, do you really think SS benefits will still be intact in 17 years when you are wanting them?
I seriously would not plan on it being there if you are doing retirement planning. Maybe the medical will still be there but I doubt the cash benefit will survive.

[emptypockets]

so if you retire at 62, but wait to collect until 67, will you be paying for your medicare out of your pocket at 65? It is assumed that your highest 3 years of wages are your last 3 years before retirement. suggest you read all the info available on the social security website and other retirement web sites.