Will lower 2024 income reduce my Social Security benefits if I delay past retirement?
I left my job in March and technically 'retired,' though I'm only 63 so not at my Full Retirement Age yet. I'm trying to figure out if delaying Social Security is still the smart move for me since my 2024 income is going to be significantly lower than previous years. My concern is whether my benefit amount might actually DECREASE if I wait until next year or later to file. I know SS uses your highest 35 years of earnings, but the website calculator hasn't updated with my reduced 2024 income. Does having 9 months of $0 income this year hurt my eventual benefit amount? Or am I overthinking this and should just stick with the delay strategy to maximize my monthly payment? Feeling confused about whether the smart move is to start collecting now before this lower-income year potentially drags down my monthly amount. Any insights from those who've navigated this appreciated!
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Jibriel Kohn
Your benefit amount won't go down because of lower 2024 income. Social Security uses your highest 35 years of earnings (indexed for inflation), so unless 2024 would have been one of your highest-earning years, having 9 months of zero income won't impact your benefit calculation at all. The Primary Insurance Amount (PIA) calculation looks at your lifetime earnings, not just your most recent year. If you've worked 35+ years already, this partial year likely won't factor into your benefit calculation. Delaying benefits still increases your monthly payment by approximately 8% per year between FRA and age 70. At 63, you're already taking a reduction from your FRA amount, so waiting even a few months will increase your lifetime benefit.
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Joshua Hellan
•Thank you so much! That's a relief to hear. I was really worried that my calculation would somehow get messed up. So to clarify - even though my income this year is much lower, the SSA will just ignore this year if it's not in my top 35?
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Edison Estevez
I went thru this EXACT thing last yr!! Retired at 62 and worried about the same issue. Dont worry AT ALL, SSA only counts ur top 35 earning yrs so unless this partial yr would somehow be in ur top 35 (which is unlikely) it doesn't matter!!
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Jibriel Kohn
Yes, that's exactly right. If 2024 isn't among your highest 35 years of earnings (after indexing for inflation), it simply won't be used in your benefit calculation. The SSA automatically selects your highest 35 years - they don't just use the most recent ones. If you've worked for 40+ years, having 9 months of lower or zero income this year likely won't impact your calculation at all. Your benefit amount is based on your earnings history over your entire working lifetime, not just recent years.
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Emily Nguyen-Smith
my brother thought the same thing last yr & it turned out his benefit actually went UP even tho he didn't work the last 6 months of the year! the SSA website calculator can be confusing bc it doesn't update right away with current year earnings
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James Johnson
WRONG INFORMATION ABOVE!! I retired early and my benefit DID go down because my last year was partial!! The SSA agent told me that recent years count MORE in the calculation and my benefit dropped by $76/month because my last year had lower earnings! Don't listen to people who haven't experienced this!!
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Jibriel Kohn
•That's incorrect. Recent years don't "count more" in the Social Security benefit calculation. The formula uses your highest 35 years of indexed earnings, regardless of when they occurred. The only exception is if your recent earnings are among your highest 35 years after indexing. If your benefit changed, it was for a different reason - perhaps earnings from a previous year were updated, or there was an adjustment to the formula, or you misunderstood what the agent told you. The benefit calculation formula is clearly defined in the Social Security Act and doesn't give extra weight to recent years.
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James Johnson
•Well that's what the agent TOLD ME, so maybe they don't even understand their own system!!! All I know is my benefit was projected at one amount and then went down after I had a partial year. Whatever the reason, it HAPPENED.
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Sophia Rodriguez
I've spent HOURS trying to get through to Social Security to get answers about this exact question! I finally found a service called Claimyr (claimyr.com) that got me past the hold times. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU The agent confirmed what others said here - only your highest 35 years count, so a lower income year typically won't reduce your benefit unless it would have been one of your highest earning years. Delaying still increases your benefit by the same percentage regardless of any zero income months now.
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Joshua Hellan
•Thanks for the tip about that service. I've tried calling SSA twice and got disconnected both times after 40+ minutes on hold. I'll check out that video. And thanks for confirming what others have said about the calculation!
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Mia Green
Something nobody mentioned yet - if you're married, the delay strategy becomes even MORE valuable because of survivor benefits. When either spouse dies, the surviving spouse gets the HIGHER of the two benefit amounts. So if you're the higher earner, delaying increases not just your benefit but potentially your spouse's future survivor benefit too.
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Emma Bianchi
im turning 62 next month and got the same question!!! lol. think im just gonna take it asap, whats the point of waiting when we could die tomorrow??
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Joshua Hellan
•That's definitely something I've considered too. The break-even point is somewhere in the late 70s I think, so it's kind of a gamble either way. I'm leaning toward waiting at least until 65 though.
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Jibriel Kohn
One more important point - if you're still deciding when to claim, you should check your earnings record on the MySocialSecurity website. Make sure all your past earnings are recorded correctly, as errors can significantly impact your benefit calculation. You'll want to create a strategy based on your expected longevity, other income sources, whether you're married, tax situation, and how much you need the income now versus later. For someone who's already 63 and considering waiting, each additional month of delay increases your benefit by about 0.5-0.7% depending on your exact birth year.
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Joshua Hellan
•Good advice about checking my earnings record. I did that about a year ago and everything looked correct, but I should probably verify again. And you're right - I need to consider all those factors. I have some 401k savings I can tap if needed, which is partly why I'm considering the delay.
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Edison Estevez
My neighbor waited till 70 to claim and now gets almost $1,400 more per month than his friend who claimed at 62. That's almost $17k more PER YEAR for the rest of his life!!!!
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Aisha Khan
As someone who just went through this exact situation at 62, I can confirm what others are saying - your lower 2024 income won't hurt your benefit calculation! I was terrified about the same thing when I left my job mid-year last year. The SSA really does use your highest 35 years of indexed earnings, so unless 2024 would somehow be one of your top earning years (which seems unlikely if you only worked 3 months), it simply won't factor into your calculation at all. I'd also recommend double-checking your earnings record on MySocialSecurity.gov to make sure everything from your working years is accurate. That's more important than worrying about this partial year. The delay strategy is still mathematically sound - you're getting those delayed retirement credits which compound over time. One thing that helped me decide was calculating my break-even point and considering my health/family longevity. If you're healthy and have good genes, waiting even a year or two can pay off significantly over your lifetime!
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