Ask Larry

Will Years of Zero Earnings Reduce My Benefit?

I am 62 and will retire from my job of 30 years with a pension that will provide 37% of my salary. I have enough saved in 401K plans and my employment annuity to hold off collecting social security. However, I am worried what 4 or 8 years worth of non-earning years will do to my social security benefit when I start receiving social security at either 66 or 70?

Your retirement benefit is based on the highest 35 years of inflation adjusted earnings. If you have fewer than 35 years of earnings, then some years with zero earnings will be included in the high 35 years. If you have more than 35 years of earnings, then 4 or 8 years of zero earnings will not reduce your high 35.


Jul 30 2016 - 10:45pm
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