Hi,
I am impacted by the Windfall Provision. I‘m unsure how to figure out if I should take retirement at age 62 or wait until 67. Of course more money If I wait but always losing 30% because of windfall. Does it matter early or later?
Thank you.

Hi,

Whether or not your primary insurance amount (PIA) is lowered due to the Windfall Elimination Provision (WEP), if you start drawing your benefits at age 62 your benefit rate will be roughly 30% to 35% lower than if you started drawing at full retirement age (FRA). A person's PIA is equal to their Social Security retirement benefit rate if they start drawing at FRA.

If WEP applies in your case, it will be applied to your PIA. If you start drawing at your FRA you'll be paid your WEP reduced PIA, but if you start drawing earlier than that your benefit rate will additionally be reduced for age. Our software can handle WEP computations, so you may want to use the software to compare your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry