Will my Social Security benefit at 62 be reduced if I stop working at 57?

Yes, your actual benefit at 62 will likely be lower than the current estimate if you stop working now at 57. Here's why:The SSA calculates your benefit based on your highest 35 years of earnings. The estimate on your statement assumes you'll continue working at your current salary until you reach the age shown on the estimate (62).If you stop working at 57, you'll have 5 years of zero income that weren't factored into your estimate. This means your actual benefit will be recalculated with those zeros potentially replacing higher-earning years in your top 35, resulting in a lower monthly benefit amount.Since you mentioned having 33 working years, adding 5 zeros could definitely impact your calculation, as you don't quite have a full 35 years of earnings yet.

Oh no...that's not what I was hoping to hear. Do you have any idea roughly how much lower it might be? Are we talking like 5% less or could it be much more significant? I'm trying to decide if I need to rethink my whole retirement timeline now.

The impact could be pretty significant. The SSA's benefit calculator uses your highest 35 years of earnings (adjusted for inflation). Since you only have 33 years of work history, you already have 2 zeros in your calculation. Adding 5 more years of zero income will mean 7 total zero years in your 35-year calculation.You can get a better estimate by creating an account at ssa.gov and using their retirement calculator. Input your planned retirement at 57 with no future earnings, and it will show you a more accurate projection.Another option: consider working part-time between 57-62. Even earning modest income during those years would help offset some of the reduction.

I totally went through this exact dilemma! The drop can be significant - when I modeled stopping work 5 years before claiming, my benefit dropped almost 18% from the estimate. Really shocked me. Every situation is different though, depends on your specific earnings history and how your highest-earning years align.

yur estimate basically assumez you keep making what your making now til 62. its REALY important to know this! my husbands beneft was like 20% less than what his statemnt said bcuz he quit early n got 0s in his record. big bummer when he finally got his first check!!

Yikes, that's alarming! I definitely don't want a 20% surprise reduction when I finally claim. Maybe I need to look at working at least part-time for a few of those years. Thanks for sharing your husband's experience - that really puts it in perspective.

Have you checked if you'd be eligible for any spousal benefits? Sometimes that can be higher than your own benefit, especially if you've had years out of the workforce. Just another angle to consider in your planning.

I'm not married, so unfortunately that's not an option for me. I'm really on my own with this and need to make my own benefits work!

I recommend calling SSA directly to get personalized calculations for your specific situation. They can run different scenarios and show exactly how stopping work at 57 would affect your benefit at 62 versus your current estimate.However, getting through to an agent can be nearly impossible these days. I spent weeks trying before discovering Claimyr (claimyr.com) - it got me connected to an SSA agent in under 20 minutes instead of the usual hours of hold time. They have a video showing how it works: https://youtu.be/Z-BRbJw3puUOnce you talk with SSA, you'll have exact numbers to plan with rather than guessing. For a decision this important, it's worth getting the precise calculation.

Thank you - that's a great suggestion. You're right that I need actual numbers rather than guessing. I've tried calling SSA before and always gave up after being on hold forever. I'll check out that service you mentioned and see if I can finally get through to someone who can run my specific numbers.

This is a common misconception. The estimate on your Social Security statement doesn't necessarily assume you'll work until the age shown. It uses your actual earnings history and calculates based on your highest 35 years, assuming $0 for future years.Your benefit won't change just because you stop working at 57 - it's already calculated that way. The statement is just showing what you've earned so far if claimed at various ages.

I'm sorry, but this is incorrect. The SSA statement estimates DO assume you continue working at your recent earnings level until the age shown. This is directly from SSA.gov: \

Thanks everyone for your responses! I clearly need to rethink my retirement timeline. I'm going to:1) Try to get through to SSA using that Claimyr service to get exact calculations 2) Consider working part-time for at least a few of those years between 57-623) Run some new budget projections based on a potentially lower benefitReally appreciate all the insights - this community is so helpful!

Solid plan. Part-time work can make a big difference - even earning just $20,000-25,000 annually during those years would replace those zeros with something substantial in your calculation. And don't forget that your FRA (Full Retirement Age) benefit will be higher than your age 62 benefit, so if you can delay claiming beyond 62, that's another strategy to consider.

Another thing to consider is that you might be able to work just enough to replace some of those zero years without going back to full-time employment. Even a small consulting gig or part-time work earning $15,000-20,000 per year could make a meaningful difference in your final calculation. Also, keep in mind that if you have any high-earning years from earlier in your career, those 5 zeros might not replace your very best years - they'll replace the lowest of your current 33 working years. So the impact might not be as dramatic as some worst-case scenarios suggest, but it's still definitely worth getting those exact numbers from SSA. Good luck with your planning!

You're absolutely right to be thinking through this carefully! One additional consideration that might help with your planning - if you do decide to work part-time during those years, try to focus on maximizing earnings in just a few of those years rather than spreading smaller amounts across all five. Since Social Security uses your highest 35 years, having 2-3 years of decent part-time earnings (say $25-30k) mixed with a couple zero years might work out better than 5 years of very minimal earnings ($8-10k each). Also, don't forget that your earnings are indexed for inflation when calculating benefits, so your earlier higher-earning years from the 1990s or 2000s are actually worth more in today's calculation than their face value. This means those zeros might not knock out your absolute best years. The SSA calculator someone mentioned will show you exactly which years are currently in your "top 35" so you can see what you'd actually be replacing.

I just want to echo what others have said about getting those exact calculations from SSA - it really is crucial for a decision this big! I went through something similar when I was considering early retirement, and the difference between my assumptions and the actual numbers was eye-opening. One thing that might give you some peace of mind while you're working through this: you still have time to adjust your strategy. Even if you do retire at 57 as planned, you could always change course in a year or two if you find the projected benefit reduction is more than you're comfortable with. Retirement doesn't have to be all-or-nothing - plenty of people ease into it gradually. Also, consider that your expenses might be different in retirement too. You might not need to replace 100% of your current income if you're no longer commuting, buying work clothes, or saving for retirement. Sometimes a lower Social Security benefit still works fine within a reduced expense structure. Best of luck getting through to SSA and running those numbers! Once you have the real data, you'll be able to make a much more informed decision about your timeline.

One more angle to consider that I haven't seen mentioned yet - have you looked into whether your employer offers any bridge health insurance or retirement benefits that could help fill the gap between 57 and when you're eligible for Medicare at 65? Healthcare costs can be a huge wildcard in early retirement planning, and sometimes the math changes significantly when you factor in COBRA costs or ACA marketplace premiums. Also, if you have a 401k or other retirement accounts, you might want to model how those withdrawals will work alongside your reduced Social Security benefit. The combination might still give you the retirement income you need, even if Social Security alone is lower than expected. Just something to add to your analysis when you get those exact SSA numbers! Sometimes the total retirement picture looks better (or worse) than focusing on just the Social Security piece.

I'm in a very similar situation and have been researching this extensively! One strategy I discovered that might help is to look at your actual earnings record year by year. You can see this detailed breakdown in your my Social Security account online. What I found surprising is that some of my early career years (even adjusted for inflation) are actually lower than what I could potentially earn with even modest part-time work today. So those 5 zeros might not necessarily knock out my highest-earning years - they could replace some of my lowest ones from when I was just starting out. I'd also suggest looking into "bridge jobs" - positions specifically designed for people in our situation who want to work part-time during early retirement. Some companies are really embracing this model, offering flexible schedules to experienced workers. You might be able to find something that gives you the semi-retirement lifestyle you want while still contributing meaningfully to your Social Security calculation. The healthcare insurance gap that someone mentioned is huge too. I'm factoring in about $1,200-1,500/month for individual marketplace coverage in my area, which definitely impacts whether the reduced Social Security benefit math still works out. Good luck with your SSA call - I hope you get clear numbers to work with!

As someone who recently went through a similar analysis, I'd strongly recommend creating a spreadsheet to model different scenarios before making your final decision. When I was 56 and considering early retirement, I created columns for: 1. Current projected benefit (from SSA statement) 2. Benefit with 5 years of zeros 3. Benefit with part-time work at different income levels 4. Total retirement income including 401k/savings 5. Projected expenses in retirement What really opened my eyes was seeing how even earning $15,000-20,000 annually through consulting or part-time work could significantly reduce the benefit drop. In my case, working just 2 days a week at a previous employer as a consultant made the difference between a 15% benefit reduction and only a 6% reduction. Also consider that delaying your Social Security claim beyond 62 (even if you retire at 57) will increase your benefit due to delayed retirement credits. You could live off your other retirement savings for a few extra years and let that Social Security benefit grow. The key is getting those exact SSA calculations first, then building your models around real numbers rather than estimates. Once you see the actual impact, you might find the decision becomes much clearer!

I'm facing a similar decision and wanted to add one more perspective that's been helpful in my research. Have you considered the impact of Cost of Living Adjustments (COLAs) on your future benefits? While everyone's focused on how stopping work at 57 affects your benefit calculation, there's also the timing factor to consider. Social Security benefits receive annual COLAs, but only after you start claiming them. So if you claim at 62 with a reduced benefit due to those zero years, you'll be getting COLAs applied to that lower base amount for the rest of your life. This compounds over time - if your benefit is reduced by, say, 15% due to early retirement, and then you claim at 62 instead of your full retirement age, you're looking at a permanently lower benefit that grows more slowly over time compared to waiting. I've been running some long-term projections, and sometimes working just a couple more years or doing meaningful part-time work can make a difference not just in the initial benefit amount, but in the total lifetime value when you factor in decades of COLAs. Just another angle to add to your analysis when you get those SSA numbers! The math gets complex but it's worth understanding the full long-term picture.

This thread has been incredibly enlightening! As someone just starting to think about early retirement planning, I'm amazed by how many factors need to be considered beyond just the basic benefit calculation. What strikes me most is how this isn't really a binary decision - it's not just "retire at 57 or don't." There are so many creative middle-ground approaches being discussed here: strategic part-time work, consulting arrangements, bridge jobs, timing the actual Social Security claim separately from retirement, and even concentrating earnings into fewer years for maximum impact. The healthcare cost factor that several people mentioned is huge too. I hadn't realized how expensive that 8-year gap before Medicare eligibility could be, and how that needs to be weighed against any Social Security benefit reduction. For anyone else reading this who might be in a similar situation, it seems like the key takeaways are: 1. Get exact calculations from SSA rather than relying on estimates 2. Model multiple scenarios with different part-time work arrangements 3. Consider the long-term impact of COLAs on a reduced benefit base 4. Factor in healthcare costs during the Medicare gap years 5. Remember that you can adjust course - retirement doesn't have to be permanent from day one Thanks to everyone who shared their experiences and research. This community is such a valuable resource for navigating these complex decisions!

This has been such an incredibly valuable discussion! I'm in my early 50s and starting to think about my own retirement timeline, so reading through everyone's experiences and insights has been eye-opening. What really stands out to me is how this decision involves so many interconnected factors that aren't immediately obvious. The healthcare coverage gap, the COLA compounding effects, the strategic timing of part-time work versus full retirement - these are all things I wouldn't have thought to consider without this community's collective wisdom. I'm particularly intrigued by the idea of "bridge jobs" and consulting arrangements that several people mentioned. It seems like the labor market is becoming more flexible for experienced workers who want something between full-time employment and complete retirement. That gives me hope that when I reach this decision point, there might be creative options I haven't even considered yet. For those of you who have actually made this transition - how did you find those part-time or consulting opportunities? Was it mostly through former employers, or did you have to search more broadly? I'm curious about the practical aspects of setting up that kind of bridge arrangement. Thanks to everyone for sharing such detailed, thoughtful analysis. This is exactly the kind of real-world guidance that's impossible to find in generic retirement planning articles!