Discussion Posts

    • Social Security

      • Posted by Tim
      • on August 17, 2008 11:13 PM EDT

      Is there any way to estimate (with reasonable accuracy) the amount of an SS retirement benefit if the individual stops working early.  I have a client who plans to stop working at 53, and plans to draw SS at 62.   Because SSA earnings projections assume that the client will continue to work, their benefits estimate will be off.  Retireng early is going to influence AIME and PIA, but to what extent I'm not sure. 

      Is there a quick way to calculate this somehow without going into the client's earnings history ?

      (I'm thinking No)

      Also- Has anyone used the calculators on the SSA website?  Will the client be able to get a revised benefits estimate based on the early retirement?

       

      Thanks

      Tim

       
    • Re: Social Security
      • Posted by ladydi
      • on August 18, 2008 2:23 PM EDT

      Before my husband retired early, he contacted the local social security office. The person he talked with was able to answer his questions and calculate how much social security he would lose.

       
    • Re: Social Security
      • Posted by Michael E. Kitces
      • on August 18, 2008 3:38 PM EDT

      Tim,

      I believe the SSA's "Detailed Calculator" gives you the ability to enter year by year earnings information (past and projected), so you can use it to see exactly what the impact would be for early retirement. If you have the client's Social Security statement with the prior earnings history, you should be able to estimate the impact pretty accurately.

      You can view more information on the Detailed Calculator (and download it) at http://www.ssa.gov/OACT/anypia/anypia.html.

      I hope that helps a little!

      Respectfully,
      - Michael E. Kitces, MSFS, MTAX, CFP(r), CLU, ChFC
      Publisher, The Kitces Report, www.kitces.com
      Blogger, Nerd's Eye View, www.kitces.com/blog