Will I Get Less At Age 70 Because I Stopped Working At Age 62?

Apr 14 2018 - 8:21am

I am 66 and have been retired for 4 years. I am not taking my SS. I plan on waiting until 70. Since SS is based on past wages earned will the fact that I will not have any earned income from age 62 to 70 cause me to receive less? Thanks


No. For example, say John's full retirement age (FRA) is 66 and he has a full retirement age rate (PIA) of $1000 based on his highest 35 years of wage-indexed earnings through age 62 (https://www.ssa.gov/pubs/EN-05-10070.pdf). If John stops working at age 62 his benefit rate would be no less than $1000 if he waits until his FRA to start drawing his Social Security retirement benefits. And if he waits until age 70 to start drawing instead, his benefit rate would increase by another 32% to at least $1320.

If John had continued working until age 70 he may have increased his benefit rate even further, but only if he earned more in one or more of those years than the amount of one or more of his previous 35 highest indexed earnings years.

Best, Jerry