Social Security break-even calculation confusing - zeros on record from govt pension job affecting my SS benefits?

You're dealing with what's called the Windfall Elimination Provision (WEP) which affects people who worked in jobs that didn't pay into Social Security but had other jobs where they did pay in. This can reduce your Social Security benefit. To answer your questions: 1. The zeros won't lower your benefit because SS uses your highest 35 years of earnings. If you have 32 years of SS-covered work, only 3 zero years would be included in your calculation. 2. Your SS benefit amount is essentially locked in now that you're working in non-covered employment, except for annual COLA increases. 3. The break-even calculation is still valid, but with WEP it's more complicated. Generally, if you don't expect to live past 82-83, claiming before 70 often makes sense. You should request a WEP calculation from SSA to see exactly how your government pension will affect your SS benefits. This is crucial for your decision.

i had literally the SAME problem last yr!!! worked 28 yrs paying SS then 7 yrs govt job with pension. the zeros dont matter much but the WEP thing KILLED my ss check!!! my pension is only like $1750/month but they still cut my ss by like $450/month because of it!!! its such a ripoff honestly

Why does the break-even calculation matter? Just enjoy your retirement! My mom waited until 70 and then only lived to 74 - big mistake! Take the money now and enjoy life. Who knows how long we have?

The Windfall Elimination Provision (WEP) and potentially the Government Pension Offset (GPO) are definitely relevant to your situation. Here's what you should know: 1. WEP reduces your Social Security benefit if you receive a pension from work not covered by Social Security (like your government job). 2. The WEP reduction is capped based on your years of "substantial earnings" under Social Security. With 32 years of SS-covered work, your WEP reduction would be smaller than someone with fewer years. 3. The zeros won't directly lower your benefit because SS uses your highest 35 years of indexed earnings. Those zeros simply won't help increase your benefit. 4. File for your SS statement with WEP calculation included to see your actual numbers. Regarding your break-even analysis: If your life expectancy is 82 and your calculations show you'd lose money by waiting until 70, then filing now at 67 is mathematically sound. The usual break-even point is around 82-83 years.

I've been trying to reach SSA for weeks about a similar situation (WEP calculation) and couldn't get through. Finally used a service called Claimyr (claimyr.com) that got me connected to an agent in about 20 minutes! They have a video demo showing how it works: https://youtu.be/Z-BRbJw3puU Worth it to actually speak with someone who could explain my WEP calculation. They told me that my pension won't affect my SS until I actually start receiving it. Also discovered I had 28 years of substantial earnings which limited my WEP reduction. Definitely recommend talking to an actual agent about your specific situation.

just fyi the wep thing is really unfair. theres a bill in congress to get rid of it but its been stuck for years. i worked 22 yrs paying ss then 15 for state govt and my ss check is tiny even tho i paid in all those years!!! total scam!!!!!

One important thing to understand about break-even calculations: they don't account for survivor benefits. If you're married and are the higher earner, waiting until 70 provides your spouse with a larger survivor benefit if you pass away first. This is a form of insurance that pure break-even analysis misses. Also worth noting that if your government pension is small and/or you have close to 30 years of "substantial earnings" under Social Security, the WEP reduction might be minimal. The formula gets complicated, but generally: - With 30+ years of substantial earnings: No WEP reduction - With 21-29 years: Partial WEP reduction - With 20 or fewer years: Full WEP reduction Since you have 32 years of SS-covered work, you might be completely exempt from WEP if all those years had "substantial earnings" as defined by SSA (varies by year but around $25,000+ for recent years).

Regarding your most recent question: SSA should have all your earnings history in their system. When you apply, make sure to mention you have a government pension (or will have one) AND that you believe you have 30+ years of substantial covered earnings under Social Security. They should calculate everything correctly, but it doesn't hurt to specifically bring it up. Based on everything you've shared: 1. With 32 years of substantial earnings, you might escape WEP reductions entirely 2. Given your break-even calculation and life expectancy estimate of 82, claiming at 67 is reasonable 3. The zeros on your record from recent years won't negatively impact your benefit (they just don't help increase it) I recommend applying soon if you've done your calculations carefully. Each month you wait past FRA increases your benefit by about 0.67%, but if your break-even math shows claiming now makes sense, then follow your analysis.

Don't forget about taxes! If your pension + SS puts you in a higher tax bracket, part of your SS benefits might be taxable. Up to 85% of SS can be taxed depending on your combined income. Did you factor that into your break-even analysis?