Here's How Early Retirement Will Impact Your Social Security Benefit

Aug 12, 2025

Worried about how early retirement might affect your Social Security? Turns out, it likely won’t hurt your benefits! They discuss how benefits are calculated based on your 35 highest earning years, not your retirement age. Even part-time work can boost your income during semi-retirement. Monthly benefits range significantly based on when you claim them, with a striking difference between starting at 62 versus 70. Curious about your personal benefits? You can easily check your estimate on the SSA website!

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Benefit Based On Top 35 Years

Social Security uses your highest 35 earning years, adjusted for inflation, to compute benefits.
The age you stop working doesn't directly change that calculation unless it replaces higher earning years.

INSIGHT

Indexed Earnings Matter More Than Timing

Social Security inflates past earnings to make older low-wage years comparable to later earnings.
Once your 35 years are filled with your highest indexed earnings, further work won't raise your benefit amount itself.

INSIGHT

Bend Points Make Benefits Progressive

Social Security applies bend points that weight lower dollars more heavily than higher dollars when computing benefits.
Higher income still pays the same tax up to the cap but yields smaller incremental benefit increases due to progressive bend points.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Thinking about retiring early and worried it might hurt your Social Security benefits? Good news: it probably won’t.

A common myth is that you have to work into your 60s to get the most out of Social Security. In reality, benefits are based on your 35 highest-earning years—not the age you stop working.

This episode breaks down how benefits are calculated, what “bend points” are, and why even part-time income in semi-retirement can make a difference.

There’s also an important distinction between when you stop working and when you start claiming. Monthly benefits can range from around $1,400 at age 62 to $2,400 at age 70, depending on the timing.

Curious what your own numbers look like? Head to ssa.gov to create a free account and check your personalized estimate. It’s a simple step that can help you make smarter retirement decisions.

Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation.

The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal.

Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements

Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.

Create Your Custom Strategy ⬇️

Get Started Here.

Join the new Root Collective HERE!