• Question
  • maximum benefits

    Asked by someone from Tremonton, UT on 4/3/2013

    I am 62. and was laid off my job at 59. Now work part time. Is my social secuirity benefits based on the last five years of my full time employment or my current part time job?

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  • Categories: How Calculated?, Social Security

Answers

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  • The short answer is that your benefits are based over your lifetime of earnings. The formula used to derive your specific benefits is complex, but general information about the calculation can be found here, http://www.socialsecurity.gov/pubs/EN-05-10070.pdf

    The best way to estimate your benefits is to create an account on the Social Security Administration's (SSA) website and use their online calculators, http://www.socialsecurity.gov/myaccount/.

    You can also use a calculator on NewRetirement's website that can help you find an optimal strategy for receiving your benefits, https://www.newretirement.com/Services/Social_Security_Start_Age_Calculator.aspx.

    Note that since you are 62, if you begin receiving benefits now, your benefit will be reduced because you have not reached Full Retirement Age per the SSA (which likely around your age 66). Also, depending on how much you earn in your part-time job prior to reaching your full retirement age, your benefit could be reduced further (http://www.socialsecurity.gov/pubs/EN-05-10069.pdf).

    This answer is provided as general information only and provided by Master’s students pursuing a degree in Personal Financial Planning at Texas Tech University. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or Certified Financial PlannerTM as to your unique financial situation.

  • Login to rate this answer:   Answered on 5/28/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.