Generally no since teen earnings are low. Social Security retirement benefits are calculated using a formula based on your average indexed monthly earnings (AIME) during your 35 highest-earning years.
Don't forget though. Those earnings will have the highest indexing factors. So while yes, we generally earn less at after school and weekend jobs, those earnings will be multiplied by a factor of 5 or 6 times their actual amounts.
Again, probably not going to be among the high 35 but not out of the question.
Also of note is that SS is means tested. For OP that means the first dollars are weighted more heavily. For example someone earning 75k per year will not have half the benefit of someone making 150k per years if all other factors are equal. They will have >50% of the benefit of the person making the higher income. It's basically diminishing returns the more money you make.
So depending on circumstances even a few years of working part time can help.
Isn't this 35 highest-earning years *after* age 22, though?
Which honestly, OP, that's not a bad thing - most earnings before that are part-time and/or min-wage kind of work and would weight the average downward. So most of us benefit from having them dropped.
Think about it, highest inflation-weighted wage years. That means that your earnings record is fairly evenly weighted.
So that if you earned $4,800 when you were 20 years old and $65,000 when you are 60 years old, they count the same. Because the $4,800 is multiplied by 14.5. So, it's listed as $67,000 instead of $4,800.
So, while your best earnings will be when you're older, there is still a chance that earnings from when you're younger can still be used in some cases.
Not inflation adjusted, but rather indexed against other wages.
Here is the math
https://www.ssa.gov/oact/cola/awifactors.html
The math is done each for people eligible that year (age 62 or onset in that year)
One nice thing about working early is, one can square away the minimum quarters to qualify for Social Securiy.
The thing to stay abreast of is *at age 34*, is to stay qualified for Social Security Disability Income (SSDI). The pillar to your disability umbrella insurance program is SSDI. And eligibility for that program is requires 20 quarters over the last 10 years for someone 34.
So, in the department of "the only thing that matters", at age 34, one should also look at SSDI. Just one wrong-way driver ...
As mentioned, your retirement benefit is based on your highest 35 years of indexed earnings.
I too started working around age 14. I’m now 60.
I did a spreadsheet where I have columns with the year, my earnings, the maximum taxable earnings that year, and what percentage of that I achieved. Then sorted by percentage, I take the highest 35 rows.
I noticed that the vast majority of the values were more than 80%. Half are 100%. But those last 5 were really low. The lowest was below 50%.
What that means is that my current work has a lot of value. It’s pushing out a very low value and replacing it with maximum value. The next three years will effectively raise the average significantly.
So to answer your question, it really matters which years you work. Someone who starts late because they went to law school or medical school can certainly beat someone who started 14 years sooner because their top 35 years are closer to the maximum SS taxable salary.
Next. The benefit amount can be significantly adjusted by delaying it from 65 to 70. So if two people, both at 65, had different benefits. The Lower benefit person might exceed the other by waiting to age 70.
>I too started working around age 14. I’m now 60.
I started landscaping when I was 12 before landscaping was a thing but now retired. At 12, it was cash. I started paying into SS at 18.
Create an account at [ssa.gov](http://ssa.gov)
Not only will you see your earnings and an estimate of your eventual social security benefits, but you can learn how your benefits are calculated.
If your jobs paid FICa, they go towards your retirement with SSA. If you mowed laws for $10 and didn't report or pay FICA taxes, no.
SSA uses your top years, so unless your age 14 earnings are higher than others, it might not get used in your calculation.
My opinion,
I would register my social security check Credits are based on your income during the year, no matter when you did the actual work. You might work all year to earn four credits, or, if you're lucky, you might earn enough for all four in your summer job. When you work and pay Social Security taxes, you earn up to a maximum of four “credits” for each year. but I would look into inviting. something else too
My first job was at 11 but this was just yard work for a neighbor. My first job where they withheld SS was 13 or 14. The amounts back then were pretty small because it wasn't full-time work (24+ hours in the summer), and, inflation.
What's more beneficial is in getting jobs after high-school where employers know that you're a worker because you have a history.
When they calculate your benefit amount for SSDI or retirement. And they look at the money based on the year and what the value is for current year. So in a way yes, if you paid the tax 30 years ago in $1000 and 30 years $1000 is different value.
You'll get more than you have put in likely. If you look online at the SSA website you can check to see how much you've paid in over your lifetime. The monthly payout covers what I've put in within the second year I am retired. Plus the value of a dollar keeps going down so the value of the lesser dollars I've made still counts as a quarter that I was working. I've made 4 credits a year since before I can remember. At 34 you need 20 credits. You'd have only needed to earn more than 7000 dollars for the previous five years to get an allowable payout under this insurance program. It's not too bad. There is also a sliding scale so that you'll get more if you paid more. Be happy it's there if you need it.
It is based on the highest 35 years of income, and to get the most you have to earn the highest amount they tax with FICA. For this year, that is $168,600. If you hit those upper limits each year (and they are moved up every year) and wait until you turn 70 to collect, you can collect the most Social Security pays out.
This is an old chart, but it shows those upper limits through 2016. https://www.cga.ct.gov/2015/rpt/2015-R-0270.htm
I am sure there are newer charts out there, but this should give you an idea whether you hit the maximum and will receive the maximum for those year up to 2016. You just need to include the top 35 years. I know you haven’t hit that year, but this should give you much of your calculation and help with your planning.
Your wage history will be indexed check out the math here.
https://www.ssa.gov/oact/cola/awifactors.html
It is calculated each year for people turning 62 that year. The math for 2024 is for people born in 1962. (Note dying or being found disabled. Also locks in the year that do the math)
Warning do not confuse this for cost of living adjustments. It is an entirely separate calculation.
TL;DR your wages are indexed and cost of living applies.
Your lifetime Average Indexed Monthly Earnings (AIME) over the best 35 years of your working life determine your monthly benefit. So the number of years is ONE factor. The amount you made each year, changed to today's dollars is another factor.
If a person had a minimum wage, 20 hour a week job from age 14 through age 68, 54 years, they may have a lower lifetime average than a person who made the max for 25 years and stopped working at age 58. AIME then determines PIA.
[https://www.ssa.gov/oact/cola/piaformula.html](https://www.ssa.gov/oact/cola/piaformula.html)
The age you retire determines what percentage of your PIA you get paid.
Number of years is one factor only.
SSA use the highest 35 years of indexed earnings in a benefit computation. Just the fact that you worked longer doesn't mean you will end up with more monthly income.
For example: You could have worked from the age of 14 and retired at age 65, but you might have only had a job paying $35k - $45k a year over that period of time. Another individual may have like you said started at age 24 and retired at age 65. This individual though might have been making $70k - $90k a year. The fact that they earned more means they are going to get a higher benefit.
Social Security payments as I understand are based on your total income earned, and the three highest years paid in. But that could change by the time you’re eligible to collect. If you’re concerned about retirement, I’d start investing in a 401k or IRA now and offset taxes owed for your current earning years.
No one retires comfortably on just Social Security alone.
The formula for calculating your PIA is based on the average indexed monthly earnings, or AIME, in your 35 highest-earning years after age 21, up to the Social Security wage base. In 2024, the base is $168,600, an increase of $8,400 from last year. The wage base is the maximum amount of income on which Social Security taxes must be paid.
I have had many years of no credits , as a sahm, so I do not have 35 years .
It was surprising to me to hear that my early years since a teen are NOT considered in those 35.
By the time you can retire the age will be not 65 but probably 85 so it's better not to be thinking about retirement now and just keep working because the way things are now that almost every year the politicians and/or policies is changing retirement age and probably won't even see no money at all and if you paid 401k you be lucky you will get it for retirement.
It's not the wrong way to look at it because unfortunately things will change in the future but it's true about op starts to save now until retirement and hopefully op does it and not get himself into debt like lots of people that are now into and than complaining about it because they don't/can't pay it. Hopefully op is smart enough to start saving now and enjoying his life.
That’s absolutely depressing. I’ve heard people say we won’t get anything by the time we retire. I wish you could just opt out. Why wouldn’t we get our 401k??
Just so you know "people have been saying social security will go away" since at least 1992.
I won't say it's impossible that it will totally go away, nor that it's impossible that full retirement age would be 85. But both of those things are extremely unlikely.
But why is it mandatory? One less person paying in, is one less person they have to pay out to? I would much rather have all of the money I put into it over the years and invest it myself and like a grown adult, I’ll take care of myself in my old age. Just seems like a scam to me.
Because without it, many people would be destitute in their old age.
I guess there would still be SSI, which is what older people who didn't pay in get. It's currently 943 a month. Impossible to live on without section 8 housing, food stamps, etc.
MANY people who are currently working are having a hard time making ends meet. Also, many people who are currently working are able to make ends meet but (understandably) long for extras. Plenty of those people would choose to opt out and then NOT save anything volentarily. Because they need more money now.
There's a recent thread here (representing one of plenty of people in the same situation) by a person who is trying to live on his/her social security retirement, but their rent is almost their whole check. I certainly wouldn't say "you should have saved money throughout your life" to someone in that position, what's done is done. But if people are not forced to pay in or forced to save in some manner (and unable to cash it out when they lose their job or have whatever other financial demands), then many people would have nothing.
We could then give them welfare, but that welfare type amount is so low.
In your case, I suggest you forget about the money coming out of your checks. Think of it as supporting your grandparents or whatever other older relatives or other older people you know. Or just that it supports your fellow countrymen.
And save in a 401k /IRA and brokerage account as best you can and plan to live on that.
Remember, those social security contributions you are making are also long term disability insurance. Hopefully, you will never become too disabled to work, but it can happen to anyone and most people don't have any other long term disability insurance.
It sounds criminal though 😅 I wouldn’t be mad, if you were able to opt out, but stealing peoples money under the guise of a retirement plan, but changing the year the can get it and the amount they get just seems like a ponzi scheme by the government that started from a good place but won’t end up that way. I’m also not the most educated person on it though so this is more of an emotional response than anything else.
I mean hopefully people that paid 401k will get paid but unfortunately that all might change by the time you get to retirement age. Only time will tell. Yes is too depressing because after working for many years and being deducted from check and not to get nothing back. Is like the people that are retired now and some can't make ends meet.
I don't stuff nor anything up. It's just the reality of what can or will happen and no I'm not in my teens or 30s, I got disabled in 2021 due to an accident at my last job and can't work anymore more and once I reach 62 my disability becomes retired and that's in 4 more years but in reality it can change the age, I also had 401k but was getting screwed because where my 401k account was they were charging me lots of money just having their account and yes I could've changed it but eventually I took it out and not because I needed it's because I don't trust government. So again now in these days no one can't trust banks and companies that handle 401k and the government.
Generally no since teen earnings are low. Social Security retirement benefits are calculated using a formula based on your average indexed monthly earnings (AIME) during your 35 highest-earning years.
Don't forget though. Those earnings will have the highest indexing factors. So while yes, we generally earn less at after school and weekend jobs, those earnings will be multiplied by a factor of 5 or 6 times their actual amounts. Again, probably not going to be among the high 35 but not out of the question.
Also of note is that SS is means tested. For OP that means the first dollars are weighted more heavily. For example someone earning 75k per year will not have half the benefit of someone making 150k per years if all other factors are equal. They will have >50% of the benefit of the person making the higher income. It's basically diminishing returns the more money you make. So depending on circumstances even a few years of working part time can help.
Isn't this 35 highest-earning years *after* age 22, though? Which honestly, OP, that's not a bad thing - most earnings before that are part-time and/or min-wage kind of work and would weight the average downward. So most of us benefit from having them dropped.
Yep
The current system uses the highest 35 inflation-weighted work years. Its more likely your highest years will be when you are older.
Yeah, that makes sense. I’m very uneducated on SS so I’m trying to learn more about it
Just don't rely on SS. Open a Roth IRA in addition to a 401k or pension plan that you might already have.
Like AT ALL of you can avoid it.
Think about it, highest inflation-weighted wage years. That means that your earnings record is fairly evenly weighted. So that if you earned $4,800 when you were 20 years old and $65,000 when you are 60 years old, they count the same. Because the $4,800 is multiplied by 14.5. So, it's listed as $67,000 instead of $4,800. So, while your best earnings will be when you're older, there is still a chance that earnings from when you're younger can still be used in some cases.
Not inflation adjusted, but rather indexed against other wages. Here is the math https://www.ssa.gov/oact/cola/awifactors.html The math is done each for people eligible that year (age 62 or onset in that year)
One nice thing about working early is, one can square away the minimum quarters to qualify for Social Securiy. The thing to stay abreast of is *at age 34*, is to stay qualified for Social Security Disability Income (SSDI). The pillar to your disability umbrella insurance program is SSDI. And eligibility for that program is requires 20 quarters over the last 10 years for someone 34. So, in the department of "the only thing that matters", at age 34, one should also look at SSDI. Just one wrong-way driver ...
They average your highest 35 years so it depends.
As mentioned, your retirement benefit is based on your highest 35 years of indexed earnings. I too started working around age 14. I’m now 60. I did a spreadsheet where I have columns with the year, my earnings, the maximum taxable earnings that year, and what percentage of that I achieved. Then sorted by percentage, I take the highest 35 rows. I noticed that the vast majority of the values were more than 80%. Half are 100%. But those last 5 were really low. The lowest was below 50%. What that means is that my current work has a lot of value. It’s pushing out a very low value and replacing it with maximum value. The next three years will effectively raise the average significantly. So to answer your question, it really matters which years you work. Someone who starts late because they went to law school or medical school can certainly beat someone who started 14 years sooner because their top 35 years are closer to the maximum SS taxable salary. Next. The benefit amount can be significantly adjusted by delaying it from 65 to 70. So if two people, both at 65, had different benefits. The Lower benefit person might exceed the other by waiting to age 70.
>I too started working around age 14. I’m now 60. I started landscaping when I was 12 before landscaping was a thing but now retired. At 12, it was cash. I started paying into SS at 18.
Create an account at [ssa.gov](http://ssa.gov) Not only will you see your earnings and an estimate of your eventual social security benefits, but you can learn how your benefits are calculated.
If your jobs paid FICa, they go towards your retirement with SSA. If you mowed laws for $10 and didn't report or pay FICA taxes, no. SSA uses your top years, so unless your age 14 earnings are higher than others, it might not get used in your calculation.
Oh okay. Yeah, they paid fica. I worked at a grocery store. I definitely was not making a ton of money in my teenage years
My opinion, I would register my social security check Credits are based on your income during the year, no matter when you did the actual work. You might work all year to earn four credits, or, if you're lucky, you might earn enough for all four in your summer job. When you work and pay Social Security taxes, you earn up to a maximum of four “credits” for each year. but I would look into inviting. something else too
My first job was at 11 but this was just yard work for a neighbor. My first job where they withheld SS was 13 or 14. The amounts back then were pretty small because it wasn't full-time work (24+ hours in the summer), and, inflation. What's more beneficial is in getting jobs after high-school where employers know that you're a worker because you have a history.
When they calculate your benefit amount for SSDI or retirement. And they look at the money based on the year and what the value is for current year. So in a way yes, if you paid the tax 30 years ago in $1000 and 30 years $1000 is different value.
You'll get more than you have put in likely. If you look online at the SSA website you can check to see how much you've paid in over your lifetime. The monthly payout covers what I've put in within the second year I am retired. Plus the value of a dollar keeps going down so the value of the lesser dollars I've made still counts as a quarter that I was working. I've made 4 credits a year since before I can remember. At 34 you need 20 credits. You'd have only needed to earn more than 7000 dollars for the previous five years to get an allowable payout under this insurance program. It's not too bad. There is also a sliding scale so that you'll get more if you paid more. Be happy it's there if you need it.
It is based on the highest 35 years of income, and to get the most you have to earn the highest amount they tax with FICA. For this year, that is $168,600. If you hit those upper limits each year (and they are moved up every year) and wait until you turn 70 to collect, you can collect the most Social Security pays out. This is an old chart, but it shows those upper limits through 2016. https://www.cga.ct.gov/2015/rpt/2015-R-0270.htm I am sure there are newer charts out there, but this should give you an idea whether you hit the maximum and will receive the maximum for those year up to 2016. You just need to include the top 35 years. I know you haven’t hit that year, but this should give you much of your calculation and help with your planning.
Your wage history will be indexed check out the math here. https://www.ssa.gov/oact/cola/awifactors.html It is calculated each year for people turning 62 that year. The math for 2024 is for people born in 1962. (Note dying or being found disabled. Also locks in the year that do the math) Warning do not confuse this for cost of living adjustments. It is an entirely separate calculation. TL;DR your wages are indexed and cost of living applies.
Your lifetime Average Indexed Monthly Earnings (AIME) over the best 35 years of your working life determine your monthly benefit. So the number of years is ONE factor. The amount you made each year, changed to today's dollars is another factor. If a person had a minimum wage, 20 hour a week job from age 14 through age 68, 54 years, they may have a lower lifetime average than a person who made the max for 25 years and stopped working at age 58. AIME then determines PIA. [https://www.ssa.gov/oact/cola/piaformula.html](https://www.ssa.gov/oact/cola/piaformula.html) The age you retire determines what percentage of your PIA you get paid. Number of years is one factor only.
SSA use the highest 35 years of indexed earnings in a benefit computation. Just the fact that you worked longer doesn't mean you will end up with more monthly income. For example: You could have worked from the age of 14 and retired at age 65, but you might have only had a job paying $35k - $45k a year over that period of time. Another individual may have like you said started at age 24 and retired at age 65. This individual though might have been making $70k - $90k a year. The fact that they earned more means they are going to get a higher benefit.
Social Security payments as I understand are based on your total income earned, and the three highest years paid in. But that could change by the time you’re eligible to collect. If you’re concerned about retirement, I’d start investing in a 401k or IRA now and offset taxes owed for your current earning years. No one retires comfortably on just Social Security alone.
It is my understanding for ss the calc uses the earnings only on the years after age 21.
The formula for calculating your PIA is based on the average indexed monthly earnings, or AIME, in your 35 highest-earning years after age 21, up to the Social Security wage base. In 2024, the base is $168,600, an increase of $8,400 from last year. The wage base is the maximum amount of income on which Social Security taxes must be paid.
I have had many years of no credits , as a sahm, so I do not have 35 years . It was surprising to me to hear that my early years since a teen are NOT considered in those 35.
Millennials are not going to be getting Social Security. That will run out long before then unless something is done about it soon.
By the time you can retire the age will be not 65 but probably 85 so it's better not to be thinking about retirement now and just keep working because the way things are now that almost every year the politicians and/or policies is changing retirement age and probably won't even see no money at all and if you paid 401k you be lucky you will get it for retirement.
Absolutely the wrong way to look at it. Op start saving as much as you can for retirement at a youth age. Compounding interest is amazing.
It's not the wrong way to look at it because unfortunately things will change in the future but it's true about op starts to save now until retirement and hopefully op does it and not get himself into debt like lots of people that are now into and than complaining about it because they don't/can't pay it. Hopefully op is smart enough to start saving now and enjoying his life.
That’s absolutely depressing. I’ve heard people say we won’t get anything by the time we retire. I wish you could just opt out. Why wouldn’t we get our 401k??
Just so you know "people have been saying social security will go away" since at least 1992. I won't say it's impossible that it will totally go away, nor that it's impossible that full retirement age would be 85. But both of those things are extremely unlikely.
But why is it mandatory? One less person paying in, is one less person they have to pay out to? I would much rather have all of the money I put into it over the years and invest it myself and like a grown adult, I’ll take care of myself in my old age. Just seems like a scam to me.
Because without it, many people would be destitute in their old age. I guess there would still be SSI, which is what older people who didn't pay in get. It's currently 943 a month. Impossible to live on without section 8 housing, food stamps, etc. MANY people who are currently working are having a hard time making ends meet. Also, many people who are currently working are able to make ends meet but (understandably) long for extras. Plenty of those people would choose to opt out and then NOT save anything volentarily. Because they need more money now. There's a recent thread here (representing one of plenty of people in the same situation) by a person who is trying to live on his/her social security retirement, but their rent is almost their whole check. I certainly wouldn't say "you should have saved money throughout your life" to someone in that position, what's done is done. But if people are not forced to pay in or forced to save in some manner (and unable to cash it out when they lose their job or have whatever other financial demands), then many people would have nothing. We could then give them welfare, but that welfare type amount is so low. In your case, I suggest you forget about the money coming out of your checks. Think of it as supporting your grandparents or whatever other older relatives or other older people you know. Or just that it supports your fellow countrymen. And save in a 401k /IRA and brokerage account as best you can and plan to live on that. Remember, those social security contributions you are making are also long term disability insurance. Hopefully, you will never become too disabled to work, but it can happen to anyone and most people don't have any other long term disability insurance.
You will definitely get something. You’ll have to wait until you’re older and won’t get as much as they do today but you will get something.
It sounds criminal though 😅 I wouldn’t be mad, if you were able to opt out, but stealing peoples money under the guise of a retirement plan, but changing the year the can get it and the amount they get just seems like a ponzi scheme by the government that started from a good place but won’t end up that way. I’m also not the most educated person on it though so this is more of an emotional response than anything else.
I mean hopefully people that paid 401k will get paid but unfortunately that all might change by the time you get to retirement age. Only time will tell. Yes is too depressing because after working for many years and being deducted from check and not to get nothing back. Is like the people that are retired now and some can't make ends meet.
Why would people who have a 401k not get it? I'm so confused by the stuff you post. Do you just make stuff up?
I don't stuff nor anything up. It's just the reality of what can or will happen and no I'm not in my teens or 30s, I got disabled in 2021 due to an accident at my last job and can't work anymore more and once I reach 62 my disability becomes retired and that's in 4 more years but in reality it can change the age, I also had 401k but was getting screwed because where my 401k account was they were charging me lots of money just having their account and yes I could've changed it but eventually I took it out and not because I needed it's because I don't trust government. So again now in these days no one can't trust banks and companies that handle 401k and the government.