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📂 Category: Social Security,Retirement Planning,Personal Finance
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Key takeaways
- The 35 highest-earning years determine how much you get in Social Security benefits.
- If there are years without income, this could drag down your average.
- Replace low-wage years with higher-earning years to raise the 35-year average and dramatically increase Social Security benefits.
- Check your salary history on SSA.gov to see how many years you have $0, then decide the smartest year to retire.
How a few short years can add up to smaller Social Security benefits
Most people who earn a paycheck and pay into Social Security know that they will be eligible for monthly benefits when they retire. Benefit checks may not cover all your expenses, but they can provide a reliable cushion for the rest of your life.
What many people don’t realize is how Social Security actually does the calculations. Your future benefits don’t depend only on your lifetime earnings or your most recent paychecks. Instead, the Social Security Administration uses the 35 highest earners to calculate your average annual wage, and that number determines your monthly payment.
If you have worked out consistently for decades, this formula can work to your advantage. For example, someone with 40 years of earnings will have their lowest five years removed from the calculation.
But if you take time off to raise children, spend years unemployed, or take long periods of time out of work for another reason, those lost years don’t disappear, they show up as zeros on your record. And those $0 years could take a bigger chunk of your future benefits than you might expect.
How one higher-income year can give your retirement income a big boost
Figuring out if your 35 best-earning years include any $0 or low-wage entries is a smart thing to do sooner rather than later. This is because knowing this before you retire can help you determine the best year to stop working.
Let’s say you are 60 years old and still working. If your record shows seven years without any income, you may decide that retiring at age 67 makes sense. Those seven extra years of wages will replace zeros, and this can raise your average significantly.
Let’s say you have 28 years of wages at an average of $40,000, and seven years of $0. Your average over 35 years, including zeros, would be $32,000.
But let’s assume that you are able to continue working, and that your current income is $60,000. If you add another seven years at that level, those earnings would replace the zeros and bring your average over 35 years to $44,000.
This isn’t just a matter of wonky math, it translates directly into the size of your monthly Social Security income. The table below shows how different 35-year average wages translate into monthly benefits for someone retiring at age 67 today.
| 35 years average salary | The amount of your monthly check today at age 67 | Additional annual income compared to the previous level |
| $30,000 | $1,511 | — |
| $40,000 | $1,778 | $3200 |
| $50,000 | $2044 | $3200 |
| $60,000 | $2,311 | $3200 |
| $70,000 | $2,578 | $3200 |
| $80,000 | $2844 | $3200 |
| $90,000 | $3,127 | $3,396 |
| $100,000 | $3,519 | $4700 |
As you can see, increasing your average wage for 35 years can translate into thousands of dollars more in Social Security income — every year of your retirement. That’s why spotting and replacing years with low or $0 pay can be a smart move.
Check your Social Security record – you may find that working longer really pays off
The easiest way to check your official wage record is by creating or logging into your Social Security account at SSA.gov. There, you can view your annual earnings history. Keep in mind that this record is typically updated once a year, usually after you file your tax return for the previous year. So, if you file your taxes in April, May may be a good time to check your account each year.
By reviewing your salary history today, you’ll see how many years of low or $0 pay are included in the average 35 years — and how many years you may still be able to trade for higher-earning years. This insight can help you decide how long you should work. For those who close multiple gaps on their record, the increase in future income can be significant.
Bottom line
Those empty years on your Social Security earnings record could drag down future monthly checks. Because benefits are calculated using your highest 35 years of income, every $0 counts against you, potentially costing thousands in your annual retirement income. Smart move? Check your wage history on SSA.gov now to see exactly how many zeros you have, whether it reflects your work history correctly, and whether you want to adjust your future retirement plans.
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