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I have 24 qualifying quarters for social security. It is my understanding that 40 qualifying quarters will get me the minimum social security benefit. Here's some stats:

  • Estimated Pension Income: $5000/month
  • Estimated SS Income after Windfall Elimination Provision (WEP) from WEP Calculator: $2000 month (seems high? or is this subject to WEP?)

    • If subject to WEP, $836 * .90 + ($2000-$836)*0.32 = $1120 WEP adjusted SS (?)

  • Age: 29
  • Retirement Savings in 401k, IRA, etc: $100k

My current job does not contribute to SS and I have a poor understanding of how SS works. My questions:

  1. Can anyone subject to the WEP chime in on how it affected their SS income?
  2. What are some FWF ways to get the extra 16 quarters? I understand that I need to make at least $1250 each quarter to make it qualifying. Uber comes to mind but I don't know if I can keep that up for 16 quarters.

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Your not getting 2000 a month SS.

Anyway, not enough info. How much did you make each your you paid into SS (the 24 qtrs) How much would you expect to make for the other 16?

SSA has an online calculator for those subject to the WEP:

https://www.ssa.gov/planners/retire/anyPiaWepjs04.html
 

Don't worry...you have plenty of years or quarters ahead of you to make it up to 40.  Highly doubt you'll stay in the current no SS payments job for the next 40 years. 

You're too young to be thinking about SS.

ach1199 said:   Don't worry...you have plenty of years or quarters ahead of you to make it up to 40.  Highly doubt you'll stay in the current no SS payments job for the next 40 years. 

You're too young to be thinking about SS.

I'm guessing that OP plans to stick it out all the way to 20-30 years in the current job.

fatbaby said:   I have 24 qualifying quarters for social security. It is my understanding that 40 qualifying quarters will get me the minimum social security benefit. ...  

40 quarters will make you eleigible to get SS.

The amount of your SS benefit depends on your income over 35 years of work.

If you're seeing a estimated benefit of $2000 right now then thats based on them assuming you work at your income level for 35 years and contribute to SS that whole time.     If you only contribute to SS the minimum 40 quarters then you'll get only 10 years out of the 35 years they use for the average.   You'll qualify for more like $600 a month based on 10 years.

 

There are all kinds of part time jobs or you can contract out your services as a sole proprietor and pay both portions as self employment tax.  I am a merchandiser in various stores.  Some third party companies hire crews to come in to do the annual inventory or reset whole sections of the box stores.  I gave even gotten the contract to demo or promo certain high end products for a day or week end.  Rinse and repeat at another store location the next week.

What's your situation, disability, very early retirement, or just planning far ahead?
 

ach1199 said:   
You're too young to be thinking about SS.
 

  You are never too young to be thinking about SS.

jerosen said:   
fatbaby said:   I have 24 qualifying quarters for social security. It is my understanding that 40 qualifying quarters will get me the minimum social security benefit. ...  

40 quarters will make you eleigible to get SS.

The amount of your SS benefit depends on your income over 35 years of work.

If you're seeing a estimated benefit of $2000 right now then thats based on them assuming you work at your income level for 35 years and contribute to SS that whole time.     If you only contribute to SS the minimum 40 quarters then you'll get only 10 years out of the 35 years they use for the average.   You'll qualify for more like $600 a month based on 10 years.

 

  True.
Isnt there a minimum SS payment and isnt it true that, in general, the SS payout (as a percentage of SS tax paid) is quite high at low income levels --- which is what OP is at (as far as SS contribution is concerned)? Unless WEP is going to make this all a nought, it maybe worth OPs while to earn enough SS credits to get to 40.

taxmantoo said:   What's your situation, disability, very early retirement, or just planning far ahead?
  Planning ahead

cme4oil said:   Your not getting 2000 a month SS.

Anyway, not enough info. How much did you make each your you paid into SS (the 24 qtrs) How much would you expect to make for the other 16?

  I'd say $360k for the 24 quarters. As far as the other 16, $20k (if I do the minimum) to $500k if I get a position that pays into SS.

fatbaby said:   
cme4oil said:   Your not getting 2000 a month SS.

Anyway, not enough info. How much did you make each your you paid into SS (the 24 qtrs) How much would you expect to make for the other 16?

  I'd say $360k for the 24 quarters. As far as the other 16, $20k (if I do the minimum) to $500k if I get a position that pays into SS.

  
You can put the numbers into the calculator.

You can estimate it by pretending that you're 65 years old today and that you worked 2006 to 2012 at $60k a year and then 2013-2016 at $5k a year and you're about to retire with a $5000 monthly uncovered pension.  Doing that it estimates that if you work 16 more credits at minimum levels your SS benefit would about $375.     Thats equivalent to worth about $100k of retirement savings in todays dollars.    so its certainly worth making sure you get the minimum requirements in to qualify.

So roughly speaking working 4 more years for a minimal amount would net you $100k.   No need to do that now though, you've got 35 years to pay into SS in future jobs to get the minimum quarters to qualify.   No need to even think about it for 3 decades.   Plus a lot can change in the SS rules in those 3 decades.  

 

jerosen said:   
fatbaby said:   
cme4oil said:   Your not getting 2000 a month SS.

Anyway, not enough info. How much did you make each your you paid into SS (the 24 qtrs) How much would you expect to make for the other 16?

  I'd say $360k for the 24 quarters. As far as the other 16, $20k (if I do the minimum) to $500k if I get a position that pays into SS.

  
You can put the numbers into the calculator.

You can estimate it by pretending that you're 65 years old today and that you worked 2006 to 2012 at $60k a year and then 2013-2016 at $5k a year and you're about to retire with a $5000 monthly uncovered pension.  Doing that it estimates that if you work 16 more credits at minimum levels your SS benefit would about $375.     Thats equivalent to worth about $100k of retirement savings in todays dollars.    so its certainly worth making sure you get the minimum requirements in to qualify.

So roughly speaking working 4 more years for a minimal amount would net you $100k.   No need to do that now though, you've got 35 years to pay into SS in future jobs to get the minimum quarters to qualify.   No need to even think about it for 3 decades.   Plus a lot can change in the SS rules in those 3 decades.  

 

 SS is also supplemented by a generous Federal welfare program that currently guarantees around $750/month for a single person at or above full retirement age (currently 65). Of course you only get this if you have no Private pension or other income that already brings you up to $750/month. Thanks to the clout of Senior Citizen voters, this is the last generous welfare program to survive the various reforms "ending welfare as we know it" and comes with no time limit or work requirement.

fwuser12 said:   
jerosen said:   
fatbaby said:   I have 24 qualifying quarters for social security. It is my understanding that 40 qualifying quarters will get me the minimum social security benefit. ...  

40 quarters will make you eleigible to get SS.

The amount of your SS benefit depends on your income over 35 years of work.

If you're seeing a estimated benefit of $2000 right now then thats based on them assuming you work at your income level for 35 years and contribute to SS that whole time.     If you only contribute to SS the minimum 40 quarters then you'll get only 10 years out of the 35 years they use for the average.   You'll qualify for more like $600 a month based on 10 years.

 

  True.
Isnt there a minimum SS payment and isnt it true that, in general, the SS payout (as a percentage of SS tax paid) is quite high at low income levels --- which is what OP is at (as far as SS contribution is concerned)? Unless WEP is going to make this all a nought, it maybe worth OPs while to earn enough SS credits to get to 40.

  Yes ... there is a ,minimum SS benefit payment.
https://www.ssa.gov/retirementpolicy/program/special-minimum.htm...



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