Hi Larry
I'm planning on working until age 70. Does the benefits reflect in my statement (at age 70)
assume I only work to FRA?

Hi,

I assume that you're referring to the Social Security statements that Social Security provides online and by mail. If you review your Social Security statement, you'll note that the benefit estimates listed are prefaced by a sentence stating: "At your current earnings rate, If you work until...". What that means is that Social Security is using assumed future earnings in their calculation of your benefit rates equal to the amount that you earned in the most recent year for which Social Security has verified your earnings. And, they're assuming that level of earnings will continue for all future years up to the age of the estimate. Therefore, your age 70 estimate shown on the statement would include assumed future annual earnings at the most recently verified earnings year level for each year up until you reach age 70.

There is usually some lag time between the end of a year and when Social Security posts a person's earnings for that year to their earnings history. So, a Social Security statement issued in 2020 may be using either the person's 2019 earnings or 2018 earnings as the assumed level of future year earnings. If a person had no earnings in either of those years, then Social Security wouldn't use any assumed future earnings in the calculation of their benefit estimates.

The calculator in our software (https://maximizemysocialsecurity.com/purchase) uses the same formula used by Social Security to calculate benefit rates. The software also permits you to project in future earnings at any level and for any years that you choose, so it may be able to provide you with more accurate estimates than those shown on your Social Security statement.

Best, Jerry