Those amounts are indexed to the AWI, so they As of October 14, 2021, they are open, but the website states that most Social Security services do not require a visit to an office. Otherwise, incomes between $25,000 to $34,000 may have to pay income tax on up 50% of their Social Security benefits. Have I Lost the Right to Collect Spousal Social Security Benefits Before My Own? Those amounts are indexed to the AWI, so they generally increase each year. That's up from $885 and $5,336, respectively, in 2017 because AWI increased by about 1.13% between 2015 and 2016. Likewise, I could see how long it would take to maximize my Social Security benefit ($4,819,500 $2,012,902 = $2,806,598 / $137,700 = Another 20 years and 16-17 years between that second bend point and the maximum level). It turns out that in 2022 the first bend point comes at an AIME of $1,024. She (usually its the wife) receives max 50% of the benefits due at the recipients full retirement age, NOT age 70. For instance, if your AIME is $5,500, the bend point calculation would look like this: .9(895) + .32(5397-895) + .15(103) =$2,262. For example if your AIME is $900, you would receive $810 (based on full retirement age). Her benefit is now higher than 50% of mine, so at least we're getting something for those additional taxes we're paying. Not a doctor, but still find lots of value in what you write. Multiply columns A and B and output the result to column C. Identify in column D the 35 highest values in column C. Add these together and divide the sum by 420 (seeing as there are 420 months in 35 years). Great tip thanks, I found that calculator and it is MUCH better than the basic my social security site, with links to other helpful places too. Social Security will adjust your 2008 earnings by dividing $48,642.15 by 2008's AWI of $41,334.97 to get an indexing factor of 1.1768. Earning an extra $100/month for only the year before you retire raises your AIME by only $100/35, or $2.86 (assuming that year is one of your top 35 years). Here are the bend points for calculating a worker's benefits in 2022. When he turned 70, this year, he applied for his benefits and I applied for my spousal benefits. Though these facts create uncertainty, its also true that the quality of your retirement depends on your planningand you must start planning somewhere. 2% back on first $25,000 combined at gas stations & restaurants. There is actually a third bend point, although few reach it. I wouldnt say its a mistake, but I suppose it could be clarified a little. So if theres a dual income couple that maxes out social security for 35 years, whats the max possible payout? I knew I would feel a need to pension such a person off in that case and so it added to my incentive to pay SS for a pair of cleaning ladies we had hired the prior year when the labor secretary nominee or someone was named in a scandal for paying their staff off the books (I still thought there was a slim chance I or spouse might be named a general someday haha). "Indexing Factors for Earnings. We also reference original research from other reputable publishers where appropriate. How Do I Calculate My Social Security Breakeven Age? Then, multiply your historical earnings by every year's corresponding index factor to adjust them into 2016 dollars. Social Security Bend Points Explained - Getting Your Financial Ducks In No one needs more than 40 credits for any Social Security benefit. One advantage of calculating your own benefits is that you can make decisions and consider trade-offs, such as whether you can afford to retire early or how much you can increase your benefits by continuing to work. Home; About Us. For a full explanation, please see the post Social Security and Early Retirement 2022: Know Your Bend Points! Then the average of all indexed earnings from the 35 highest-income years (from the fourth column above) is factored into the calculation.
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