Or is it $42.468 *2 ? When he turned 70, this year, he applied for his benefits and I applied for my spousal benefits. Amazon:Author Page. Next, you multiply each years earnings by a figure based on that year's National Average Wage Index (NAWI). In the table below, our hypothetical worker, born in 1954, is eligible for full retirement at age 66. After your AIME gets past the first bend point, the deal is not nearly as good. Well, it's not very far at all. If I am looking at this correctly, I think the statement if you delayed to age 70 instead of taking it at the full retirement age of 67, it would be 24% larger, or $52,660 ($78,990 married) is incorrect. Can I file for my Social Security at 62 and switch to spousal benefits later? You will be sent a link to the file and a confirmation to receive notifications of new posts. Financial Wellness and Burnout Prevention for Medical Professionals, 20 Ways You Are Incentivized to Earn Less, 5 Reasons to Not Give Up on Social Security, The Social Security Cost of Living Increase Is the Biggest in Decades. Many people do not account for this when doing their own calculations, which can lead them to think that taking Social Security early is a better deal, when waiting is often the better deal. We are not doctors but you have some very relevant information to all who are interested in their finances. Social Security is designed as a "progressive" social insurance system, which means it replaces a greater part of average monthly pay for low-income workers than it does for high-income workers. Have I Lost the Right to Collect Spousal Social Security Benefits Before My Own? TN 83 (11-21) RS 00605.947 Indexing Factors for 2022 Eligibility . However, the program is designed to replace more of the income of a low earner than a high earner, and that's where bend points come into play. My State and locality dont tax Soc Security benefits enhancing return. For a full explanation, please see the postSocial Security and Early Retirement 2022: Know Your Bend Points! "Benefit Calculators. One important idea behind Social Security is that workers can keep earning benefits for every dollar they pay into the retirement system for as long as they keep working. Home; About Us. The worst thing about the basic my social security site is that it didnt make it easy/obvious how to model early retirement (retirement in the sense of no longer having an income, not in terms of taking SS). ", Social Security Administration. The "bend points" are going up next year -- as they do in most years. Distributional Effects of Increasing the Benefit Computation Period., Social Security Administration. Average indexed monthly earnings (AIME) is used to determine the primary insurance amount (PIA) that values an individual's social security benefits. These different tiers, or bend points, are set by law. The bottom 70 percent of newly eligible beneficiaries would receive the same benefits as under current law; the top 30 percent of newly eligible beneficiaries (those whose AIME was at or above the new bend point) would receive smaller benefits than under current law. If you earn at least $1,510 x 4 = $6,040 in a year, you get credit for four quarters that year. This book is narrowly-focused on divorcee Social Security strategies and rules. However, I dont think the reduction applies to survivor benefits if the widow/widower has reached FRA, even if he/she took his/her own benefits or spousal benefits before his/her FRA.