How will Social Security calculate my benefits with 29 years work history but a 12-year gap?

Yes, ALL years count toward your 35-year calculation for Social Security benefits. The way Social Security calculates your benefit is by taking your highest 35 years of earnings (indexed for inflation), averaging them, and then applying a formula to determine your Primary Insurance Amount (PIA). For the years you didn't work (the 12-year gap and any other years until you reach 35), zeroes will be included in the calculation. So working longer will definitely improve your benefit amount since you're replacing zeros with actual earnings. At your current salary of $87,000, each additional year you work could make a noticeable difference in your monthly benefit. The part-time years will count, but likely won't be among your highest 35 if the earnings were significantly lower than your full-time years.

I had a similar situation with time off to raise kids. Here's what you need to understand: 1. SSA takes your highest 35 years regardless of when they occurred, so yes, those first 4 years after college DO count (assuming you paid FICA taxes). 2. For your part-time years, SSA only cares about the dollar amount earned, not whether it was part-time or full-time. If those part-time years are in your highest 35, they'll be included. 3. Since you'll only have 29 years of earnings, SSA will include 6 years of zeros in your calculation, which will lower your average. 4. Working even 2-3 years longer could significantly increase your benefit because you'll replace those zeros with high-earning years. Consider using the calculator on the SSA website to run different scenarios. Based on what you're saying, working longer is probably in your best interest benefit-wise.

The SSA website has a calculator where you can plug in your earnings history. I did this last year and it was super helpful! It gave me estimates for age 62, full retirement age, and 70.

Your situation sounds EXACTLY like my wife's!!! She also took time off for kids and went back part time before full time. Let me tell you what happened when she filed last year - it was a DISASTER!!! SSA somehow didn't have records of her early work (pre-kids) even though she definitely paid taxes. They calculated her benefit nearly $400/month LOWER than it should have been!!! We had to go through months of appeals and paperwork to get it fixed. MAKE SURE you create a my Social Security account NOW and verify all your work history is there before you apply!! Don't trust that they have everything correct!!

my mom had same situation with gap for kids. SSA told her for every additional yr she worked past fra she got about 8% more in benefits. she worked til 68 and it made big difference.

i think ur overthinking this!! my husband just got approved and didnt care about any of this complicated formula stuff. what matters most is u work at least 10 years. after that its mostly about what u earned in ur last few years thats what the SSA lady told us. if ur making $87k now and still working that puts u in good shape! dont stress about those zero years u cant change them anyway!! just file when ur ready and enjoy ur retirement!

I just went through this EXACT situation! The SSA's phone lines are IMPOSSIBLE to get through. I spent THREE DAYS trying to get someone to explain my benefit calculation with my work gap. I finally used a service called Claimyr (claimyr.com) that got me through to an agent in under 25 minutes. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. The SSA agent I spoke with explained that each additional high-earning year I work now (I earn about $92K) increases my monthly benefit by approximately $50-70 because it replaces a zero year. So working even 3 more years could mean $150-200 more PER MONTH for the rest of my life! Definitely worth considering if you're in good health.

Watch out for the WEP if you ever worked for state government that didn't pay into Social Security!!! My calculation got DESTROYED because of 8 years I worked for Ohio schools in the 90s!! No one warned me until it was too late!!

Thank you all for the great information! I just checked my Social Security statement online, and thankfully all my work history appears to be there. Based on your advice, I think I'll plan to work at least 2-3 years beyond my FRA to replace some of those zero years. The extra $150-200 per month would make a big difference over a 20+ year retirement. I appreciate everyone sharing their experiences!

Great decision to check your earnings record online! One thing to keep in mind as you plan those extra 2-3 years - make sure you're also considering the tax implications of higher Social Security benefits. Since you're earning $87k now, you'll likely be subject to taxation on up to 85% of your SS benefits when you do retire. It might be worth meeting with a tax professional or financial planner to run scenarios comparing the increased lifetime benefit from working longer versus potentially being in a lower tax bracket if you retire earlier. Sometimes the math isn't as straightforward as it first appears, especially when you factor in Medicare premiums and state taxes. That said, for most people in your situation, working those extra years does pay off significantly over the long term. Just wanted to mention the tax angle since it's often overlooked in these calculations!