I retired in 2018 at the age of 57 , and I am only collecting a pension. I have a forty year work history that’s documented with the SSA. In my ssa estimate can I assume the numbers will be accurate when I apply for early benefits at age 62? I don’t plan on working ever again but I do have those 40 years paid into ss.

Hi,

Probably not exactly. Social Security benefits are based on an average of your highest 35 years of wage-indexed earnings on which you paid Social Security taxes (https://www.ssa.gov/oact/cola/awifactors.html). Your earnings will be indexed based on the average wage index in the year you reach age 60, and that figure won't be known until shortly prior to the year you reach age 62. Therefore, estimates provided prior to when a person reaches age 62 are exactly that, an estimate.

Also, Social Security frequently uses assumed future earnings in their estimates. In other words, they assume that you will continue earning the same amount that you earned in the most recent year posted to your earnings record until you retire. So, if Social Security used assumed future earnings in your estimate that don't materialize because you've retired, then your estimate will likely be too high.

Lastly, you don't mention whether or not you paid Social Security taxes on the earnings on which the pension you receive is based, but if the pension is based on your earnings that were exempt from Social Security taxes then your Social Security benefit rate could be reduced due to the Windfall Elimination Provision (WEP). Benefit estimates provided by Social Security do not account for any reductions resulting from WEP, so if you receive a non-covered pension then your estimate would almost certainly be too high.

Best, Jerry