Confused about Social Security benefit estimates using $105K salary at FRA - need clarity before retiring

The estimates on your Social Security statement are just projections based on your continuing to work at your current salary level until you claim. Your actual benefit is calculated using your highest 35 years of indexed earnings. If you stop working before claiming, those zero-income years might replace higher-earning years in your calculation, potentially lowering your benefit amount. However, if you already have 35 solid earning years, taking a year or two off before claiming won't impact your benefit much. The SSA website has a more detailed calculator that lets you input different future earning scenarios to get more accurate estimates.

i did this last yr took off 18 months before filing. my payment was like $120 less than the estimate on my statement. not a big deal for me but depends on ur situation probably

The SSA's estimate assumes you'll continue earning the same amount until you claim. If you have 35 years of good earnings already, taking time off won't affect your benefit much. But if you're planning to delay until 70 (which increases your benefit by 8% per year after FRA), you should use the more detailed calculator on SSA.gov to get a more accurate projection with your specific scenario. Remember that delaying from FRA to 70 increases your monthly benefit by 24-32% depending on your birth year. For many people, this increase is worth it even if they stop working during those delay years. If you want to see exactly how different scenarios would affect your benefit, you'll need to create a my Social Security account online and use their detailed calculator there.

my sister just went thru this. basically if u already have 35 good years of work ur fine to take time off. SSA looks at ur best 35 years anyway & zeros out the rest. if u dont have 35 years then stopping work early means ull have some zeros averaged in which lowers ur benefit.

I had this exact same question last year! The $105K is just what they're using for projections based on your recent earnings. I ended up calling SSA to ask similar questions because I wanted to semi-retire. It took me THREE DAYS of calling to finally reach someone who could help me understand my options. So frustrating!

One thing nobody has mentioned is that the year you turn 66/67 (depending on birth year) has different earnings test rules than earlier years. In the year you reach Full Retirement Age, only earnings BEFORE the month you reach FRA count toward the earnings limit, and the limit is higher (~$56,520 for 2025). This might affect your planning if you're considering working part-time while claiming.

did u check what ur payment wuld be at 67 vs 70? for me it was only like $600 difference so I took it at 67 figured the break even point was way too far out

my uncle retired at 65 but waited till 68 to claim SS. he said it was the best financial decision he ever made. he's 88 now and says hes WAY ahead with the higher monthly amount. something to think about.

Don't forget about Medicare!!!! You should sign up for that at 65 even if you delay SS benefits!!!! I messed this up and am paying higher premiums forever as a penalty!!!