How does Social Security determine my monthly benefit?
Asked by mitshufarms
Many people retire in their 50's because it's a job benefit. Since they are no longer working and paying into social security does that lessen their benefit whereas someone who worked until age 65 paying more into SS? Does the amount you've paid into SS over the years determine your final benefit? Will I be penalized for retiring early even though I won't be eligiable for any SS for years?

Best Answer:
Social Security benefits depends on how much you put it. See: http://www.ssa.gov/ It also has a calculator for you to determine your benefits (estimated): http://www.ssa.gov/planners/calculators.htm You need to have enough credits to be able to get social security: http://www.ssa.gov/retire2/credits.htm and http://www.ssa.gov/retire2/credits1.htm and http://www.ssa.gov/retire2/credits2.htm (for normal retirement, not disability). Every year, within one to two months of your birthday, you should receive a notice from SSA regarding your earnings and estimated benefit amount if you were to retire.

The Social Security Administration will not tell anybody how they figure out what your benefit level will be. If you retire earlier than 62, yes you will have a benefit reduction because you are no longer paying into the system. The amount you have paid in is a factor but exactly how much weight it carries is unknown. By the way, the retirement age for someone to collect full benefits is now at 66 for most people.
Answered by frak1a12345

http://www.ssa.gov/planners/calculators.htm
Answered by jake