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by Russell Gloor, AMAC Certified Social Security Advisor
Association of American Mature Citizens
Ask Rusty – Increase the amount of your social security benefits
Dear Rusty, I was 67 in September 2018. My estimate of benefits is $ 1,478 per month if I am now claiming benefits. I work and I will continue to work as long as possible. My 35-year income period includes about ten years of zeros when I got married (twice for about 5 years each). If I am now claiming benefits, will my monthly amount increase if I continue to work? I read that the SSA recalculates each year and uses your high years. I earn about $ 57,000 a year now and I hope I will continue to do so. Does the SSA replace one of zero years with the years I work after claiming benefits and increase my monthly benefits accordingly and how much? I really appreciate your help in this regard because I would like to decide this month. I read on SSA that if I do not pretend that it will increase by 8%, but I also read that I could make a profit and work too, and that the financial situation would be better.
Signed: Senior Worker
Dear Senior Senior, Yes, if you have recorded 10 years of zeros in your 35 years of earnings, your most recent earnings each year will replace one of those years (0), if the earnings match what Social Security considers to be " substantial "(which would be your income of 57 000 USD). . Social Security gets your earnings information from the IRS as soon as your W-2 is available each year and makes any adjustment to the benefits needed at that time (if you are self-employed, the adjustment is after you have reported your income taxes). When Social Security receives your income information each year, it will recalculate your "indexed monthly average salary" (AIME) with your revised 35-year earnings history (including a year minus zero), adjust your "primary insurance" (or "PIA"). "), And increase your profit accordingly. I can not tell you what the increase would be because I do not have access to your lifetime earnings statements, but you should not expect it to be a significant increase each year. After all, your new winnings will only represent 1 / 35th of your AIME, so the increase in your benefits will not be important. But if you continue to work with high incomes, your benefits will continue to increase over time and every increase will last the rest of your life.
You are right in saying that for every year you wait to claim benefits beyond your retirement age of 66, you will get 8% deferred retirement credits (CRPs) until you be 70 years old. the age of retirement. You now earn these ROCs at the rate of 2/3 of 1% each month after your FRA and you will continue to earn them until you claim (but not after 70 years). However, if you are trying to compare the increase you will get by claiming benefits and continuing to work, compared to the 8% increase per year that you will get by deferring the payment of your SS, know that the annual increase of 8% will be much more than any increase you will get by working and replacing a zero year. And the fact is, if you continue to postpone and continue to work, you'll continue to improve your potential earnings and earn these deferred retirement credits until you're 70 years old. In other words, you can do both.
This article is intended for informational purposes only and does not represent legal or financial advice. It presents the opinions and interpretations of the staff of the AMAC Foundation, trained and accredited by the National Social Security Association (NSSA). The NSSA, the AMAC Foundation and its staff are neither affiliated nor endorsed by the Social Security Administration or any other government entity. To ask a question, visit our website or E-mail we.
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