r/Fire • u/Independence7 • 6d ago

Social Security

As part of retiring earlier say 55 or before do you account for the potential of less SS once claimed due to no years of income. For the people that fired did that move the needle to work longer?

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u/jmmenes 6d ago

How is social security even calculated?

-5

u/ehead 6d ago

I think it's based on your 15 highest earning years.

14

u/cantpossiblyjudge 6d ago

It’s 35

5

u/trader_dennis 6d ago

Also there are 3 bend points. AIME is indexed to CPI.

The Social Security Administration calculates your Average Indexed Monthly Earnings (AIME) over your highest-earning 35 years. That AIME is then run through a three-tiered formula using two primary bend points:90% Tier: Replaces 90% of your AIME up to the first bend point.32% Tier: Replaces 32% of your AIME between the first and second bend point.15% Tier: Replaces 15% of your AIME above the second bend point (up to the taxable maximum).Current Bend PointsBend points are adjusted annually based on the national Average Wage Index. The figures are:First Bend Point: \(\$1,286\)Second Bend Point: \(\$7,749\)

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u/jmmenes 6d ago

Cool will look into it.