Ask Larry

How Much Would Each Year Of My Annual Salary Affect My Benefit Amount?

I am paying tax on $100,000 annual salary. How would each year affect my benefits on social security

Hi. That's impossible to even approximate without knowing your full earnings history. Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings, so the amount that your benefit rate would increase with a year of $100,000 earnings depends on how much you earned in your previous highest 35 years. Also, the indexing factors used to calculate retirement benefits are different for each calendar year of a person's birth, so your year of birth also factors into the equation.

Our software (https://maximizemysocialsecurity.com/purchase) includes a benefit calculator that permits users to enter projected future earnings so that they can determine the effect that those earnings would have on their Social Security retirement benefit rate. You may want to strongly consider using the software to get an accurate calculation of your projected benefit rate and to fully analyze the filing options available to you so that you can determine your best strategy for maximizing your benefits.

Best, Jerry

Posted: 
Sep 12 2021 - 6:01pm
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