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Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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I am a 55 year male who is looking at taking a total sabbatical

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I am a 55 year male who is looking at taking a total sabbatical for one or two years. During this period I will not have any income and hence not pay any SS taxes etc. I then plan on working after the two year break. Will this break in any way impact my SS earnings. I do get my SS annual statement that tells me what I would make at retirement at ages 62, 65, 67. Would this break lower my benefits in any way and will my restarting work after two years improve my benefits in any way???

Bill :

This break could impact the amount of your social security benefits. The amount of your social security benefits are based on your highest 35 years of earnings over your lifetime. Your projected benefits on your annual statements are based on the assumptions that you continue working and earning the same annual amounts that have been reported in past years. So if you have 2 years of no earnings and then resume at the same level of earnings as you currently have, then your 35 highest years may be changed. Hence, your benefits may be slightly lower then projected.

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