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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 12675
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I am 66 and schedule to get $2,300 per month from SSA. I am

Customer Question

I am 66 and schedule to get $2,300 per month from SSA. I am self employed and will continue working until at least 70. How can I increase it to $3,000 per month at age 70
Submitted: 1 year ago.
Category: Social Security
Expert:  Lane replied 1 year ago.

Hi,

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You've asked a question that requires quite a bit of math to answer AND may no BE achievable, depending on your earnings history.

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First the easy part ... all other things being equal, your benefit will increase by 8% per year, simply becasue of getting the delayed retirement credits that come for waiting until age 70.

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So that takes you from 2300 to 3129, simply by waiting to age 70 (all other things being equal)

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The only caveat to that is the way social security is calculated. Social Security uses something called Average indexed Monthly Earnings (AIME) to calculate your benefit.

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AIME uses your HIGHEST 35 years of earnings... so, if you are earning more, annually than ever before, and you already have 35 years in the system ... then you are replacing lower earning years with higher earnings in that average. if you eaarn less, it won't hurt you (again IF you have those 35 years already in the system)

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But if you do not yet HAVE 35 years in the system, it's important that you try to earn at least as much as your lowest earnings year in the system.

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By the way, the earnings are indexed to inflation, so you also have to incorporte into those earnings that 50,000 today buys what 15,000 bought 30 years ago.

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Finally, it's important to understand that each year is only one more year in year average, thaat 8% increas every year for waiting until age 70 is FAR more important.

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Rather tha trying to crank out the numbers for yourself, you may want to use these calculators provided by Social Security.

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https://www.ssa.gov/planners/benefitcalculators.html

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But again, if you already HAVE 35 years in the system, and you know that the 2300 is a good number, you'll hit your mark simply by waiting unti 70 to take the benefit.

Expert:  Lane replied 1 year ago.

Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

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Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Expert:  Lane replied 1 year ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know if you need more here.

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Lane