How Much Will I Get from Social Security? (Bend Points Explained)

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Title	:	How Much Will I Get from Social Security? (Bend Points Explained)
Lasting	:	11.00
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This is awesomeexplained very well First time viewerand had to subscribebecause it so good
Comment from : @newpanditjee

In saving Social Security one of the plans is to eliminate the income cap,which is well published The part the government doesn't tell you is that thy are putting in a mouth bend point of 001
Comment from : @stewartayvaliotis4848

very clear explanation, thank you!
Comment from : @garyli7222

Excellent tutorial Erinthank you
Comment from : @Tony-dx3eo

Hmmm so I followed along here and used my numbers for earnings and using this formula my retirement benefits at FRA would be 287945 however I retired "early" at 65 years of age and my actual payout is 3330 idk I just hope they don't come back and demand the "extra" money back at some point I have heard of that happening (my next door neighbor after 25 years and my mother in law after 1 year) yikes I do enjoy your channel though
Comment from : @davidsnipes7297

In 2018 my benefits were 65900 a month thanks to wep only got 40 of that In 2019 I worked a job part time Oct 2019 to march 2020 which would have added quarters to my work history
Comment from : @AJBAKER70S

what a sham
Comment from : @KimaniT

New bend points for 2025 are as follows: $1,229 (90), $7,391 (32), and over $7,391 (15)
Comment from : @russellmm

my wife was a teacher for over 10 years will my survivor benefits increase under the fairness act
Comment from : @MikeFoster-f2t

it not be untill nextif get rise at all this video promis and never deliver
Comment from : @rickyodom1201

Erin: In 2015 the company I work for shut down the facility I was assigned to at that time Months prior to the shutdown a SSI representative (actual SSI government employee) came in to give presentations for those nearing the age to claim SSI benefits Though I wasn't close to being eligible to claim SSI benefits, I was curious about the presentation SSI rep had a 1 hour PP presentation and answered many questions I left the conference room thoroughly confusedbrYour 11 minute presentation here, has me confident that I know what to expect and plan for when it comes time for me to claim SSI benefits
Comment from : @kevinriordan7842

Best explanation I wish I had seen your channel before, it would have help me a lot
Comment from : @bernarditaschuck9739

The AIME in the video is reallya AME Meaning in the example's the indexing has been left out
Comment from : @davidleonard4925

This was very helpful!! I just subscribed… keep this up I just turned 54 and this was perfectly timed
Comment from : @thurmanadmin1799

The bend points are why SSA felt it necessary for the WEP (Windfall Elimination Provision) The people claiming that WEP is unfair don’t appear to be aware of the bend points and how they create a windfall for someone who has also been in another government sponsored pension plan that exempts them from having to contribute to Social Security This would be a great topic for another video
Comment from : @carlam6669

Soooo, what we're explaining here is that firstly, what's the point in striving to earn more when the "ratio" doesn't reward that in any substantial way and secondly, this is all semantics as NONE of these small bags of inflation destroyed peanuts will in any way tide a regular member of the public through anything but buying one last ice cream cone while your house is repossessed So worth the 35 years slogging away like a good little worker
Comment from : @anthonyjames7532

I hate the SS system It one of the biggest forms of welfare (Ponzi scheme is more accurate) we have I wouldnt mind it if everyone was treated equally Meaning the person in your example that made 100k (and therefore paid DOUBLE the SS taxes of the person who only made 50k) got double the SS check of the person who made 50k a year It is so easy for people these days to cry about high income earners 'not paying their fair share' This is a prime example of them paying their fair share plus some and not getting an equal benefit from it Hard work is NOT rewarded when it comes to the governmentbrbrI am in the upper brackets and unfortunately am loosing out I wish they would give people the ability to opt out of paying SS taxes and exclusively rely on my own savings and not collect a SS check But of course we know the SS system would collapse on itself because it is a Ponzi schemebrbrbrBut thank you for all the videos I have a couple family members and one family friend who just retired or have been retired for a while and are trying to make sense of their current situation Your videos have helped a LOT
Comment from : @toddfromflorida

Have you ever done a video on the "Teacher's Windfall Tax Penalty"?
Comment from : @JPB-d3n

Excellent explanation! Understandable! ❤😎👍🏽
Comment from : @Fruit17-ip4vl

Thanks for explaining how SS payment calculated Never thought about before
Comment from : @VitoAD

Don't forget the "indexed" portion of the AIME calculation That is until the age of 60, prior earnings (in your example $50K/yr and $100K/yr) is indexed by an average wage index that accounts for inflation For example, the worker who earned $50K in 2002 would actually be 2x in today's dollars, or $100K for that year
Comment from : @Larimarc

Love this Video but think you could have done a better comparison to make it simple showing an example when someone hits the 1st bend point vs the second Bend point and Stop Thereotherwise BrilliantThank you
Comment from : @richardcisneros1228

Hi Erin ! Love you videos great information, also love you smile ! Keep the information coming
Comment from : @lrh2931

Love the bloopers!! I fast forwarded thru most of this video - I knew the info already I was hoping for a comment on whether the SSAs estimates are accurate Keep the bloopers coming
Comment from : @mkmac9539

Adorable, such a great explanation!!!brLoved the video
Comment from : @papiaarora1324

My SSI is $94300 and the State gives #1400 I Now get $27500 OTC and $12000 in SNAP , Extra Help , LEHEP , Medicaid and Medicare
Comment from : @QuaaludeCharlie

Good info and so damn cute
Comment from : @NoMoreLibs

Nice😊 thanks
Comment from : @longroad8107

its confusing but its simple Social security is meant to plan for death and is faking your death before one is actually dead and allows the military to fulfill contracts that your farm or company may support society with Just hand the work and farm down to your kids
Comment from : @CRITESBIKER

What happens if you’re on disability for five years of your working career?
Comment from : @dickgoesinya4773

Excellent 👍very well explained Thank you so much
Comment from : @Sidkarsun

you're too cute
Comment from : @RichieRich-pn3gg

Depends on color of your skin as well
Comment from : @josebautista7311

This video ignores the most important part of the question - what happens when social security goes bankrupt? Most people in the workforce today won't get what social security promises because social security won't have enough money to write all those checks! talking about social security without explaining that fact is very irresponsible
Comment from : @riverbellamy6735

So if it looks at lifetime earnings, does it really matter if you have less than 35 years? Is 50k*420 months the same as 100k*210 months, the same as 150k*140 months?
Comment from : @EricMiller-v9s

What a simple and concise explanation and breakdown of SS and payouts in the future Have you done and early withdrawal video at age 55?
Comment from : @DCportraits

The bend points work like tax brackets!
Comment from : @alexc2265

I only have a total 31 years of working I am 56 years old now Can i claim my social security benefits now? If so, how much is my monthly benefits?
Comment from : @benjaminanacay3148

Erin, great video I don’t have a problem with removing indexing for simplification purposes as others have mentioned, however I did notice two errors in your calculationsbrbrFirst, and not that significant, you rounded the AIME to the nearest cent Prior to running it through the bend points, AIME’s are rounded to the lower dollar By not doing that you create a potential for an incorrect PIAbrbrSecond, and I think this is significant, you calculated the raw PIA (the PIA after the application of bend points) and used that to give various benefit examples at age 62, fra, etc However, the raw PIA must receive COLA adjustments from the year of age 62 through the month of benefit entitlement By omitting this you are missing a crucial step in the calculation of the PIA and benefit amount The amount you would receive at FRA is greater than just the raw PIA
Comment from : @takethecurseOFFwashingmachine

its kind of distracting you look nice i remember when you got pregnant it was like well, i guess i'm not the only one who thinks that lol
Comment from : @cryengine_x

I have calculated mine more than once to estimate if I retire early , I already have 35 years brDid you know they lowered the multipliers numbers slightly this year???brI could see multipliers going up because of inflation but can't understand how they would go down ?brYou know anything about it ?
Comment from : @jamesgreen1857

Is this calculation missing anything? Because when I calculate my current AIME vs what the Social Security website calculates for me (estimating zero future earnings so it should just be my earnings through 2023)… I get very different results The AIME calculation is showing about $500 less per month
Comment from : @FreakyLynx

I love the bloopers 🤣
Comment from : @apolofx

hey this was my idea 😄 great video!
Comment from : @robertkelly6189

Excellent info explained well Thanks!
Comment from : @cltinturkey

Erin - I would like to learn more about trusts for estate planning Do you have any videos or suggestions on this topic?
Comment from : @michaelb1369

I did some modeling and that 015 rate really makes it hard to get the max rate (assuming you aren’t maxing out the SS limit your first several years of employment) The good thing is that if you are past that second bend point before your late 50s it takes a lot of pressure off continuing to work just to get the most of out of your SS benefits
Comment from : @mavrikmavrik3032

Fabulous content, Erin I'm learning a ton from you
Comment from : @jeannettedrown7687

I wish I could opt out of social security I would be getting so much more money at retirement if i could invest that 62 of my income
Comment from : @daheroweneed2169

You are KILLING it! Congratulations ETM on your increasing viewership Your content is fresh on informative You do an amazing job teaching me new stuff all of the time brThanks for sharing your love of teaching and I always watch the out takes at the end It reminds us that even You mess up 😂
Comment from : @tft24tft

Love your content! Please do a video explaining the Secure Act 20 thank you!
Comment from : @Dodger27

Very good explaination of this It's amazing how many people don't understand this type of thing So, along with this, a followup subject for you might be to explain how the Wage Index works I think people would be surprised how much that $20,000 they earned 35 years ago, is accounted for when adjusted for inflation Another idea for a video, which kind of fits in the same line as this one, would be to explan RMD calculations People get so excited about taxes when RMD's start, but we never hear that with the 4 rule Truth be told, the first several years of your RMD's, based on the formula, would be less than 4
Comment from : @jdgolf499

Great explanation! I think though they need to revisit this whole SS thing perhaps making it optional To be honest, I'd rather sock away the portions they're already taking and invest myself
Comment from : @taurusthebull76

I love the bloopers!
Comment from : @DPS-Runner_Cyclist

Thanks for the Math breakdown🙏🏿😊
Comment from : @charletfoster8917

You did an excellent job of explaining the social security PIA calculation Trust me when I tell you that most people who work in a Social Security office can’t give a clear explanation I am curious as to how you came by this knowledge brThe term “maximum benefit” can be misleading, as it depends on when you were born, when you stopped working, and how much you earned It’s basically different for everyone
Comment from : @MrStan0630

Hi Erin,br Great content and video Extremely helpful, concise and informative Thank youbr Binging through some of your other videos I found that we share something in common I appreciate your courageousness and transparency It kind of blew me away I feel we both may benefit from sharing our experiences Life is about self-improvement, self-development and constant learningbrBest of health!brP S keep up the great work!
Comment from : @kliff8586

Best explanation for SS benefits I've ever seen 👍🏽✅️💯🔥
Comment from : @CBearLandkirk6076

How accurate is that SS statement that projects what your monthly payout going to be?
Comment from : @HHH-nv9xb

Seems a ton of people commented on this video before watching it in its entirety
Comment from : @Bum_Hip

I used to drive my accountant crazy complaining about how much I paid in social security as a self employed business owner But I paid it and got over it and now I draw the maximum amount they pay And my wife will get half of that in a couple years
Comment from : @michaelfortney7510

This information is worth your weight in gold, made simple and easy to understand Thank you for your time time and videos
Comment from : @littlejohnjp

You forgot the "indexed" part of average indexed monthly earnings (AIME) Earnings up to age 60 are indexed The specific index factors are based on the year you turn 62 The social security website provides a tool which will calculate a table of the index factors wwwssagov/oact/cola/awifactorshtml
Comment from : @johnhatcher9556

You did not cover indexing
Comment from : @nichethought6106

Thank you for the calculations! What happens if you have less than 35 years of earnings? brJust love those bloopers 🤣
Comment from : @rob46872

Nice clear and concise video Can you do a part 2 on this and explain how the income is indexed for inflation each year prior to 60? Thanks for consideration
Comment from : @mattwatkins5343

"Bend Points" Definition: SS way of reducing your lifetime monthly benefit
Comment from : @tfish7330

I have a spreadsheet that I am using to determine my Social Security benefit I've calculated that I am currently on track to receive $4,000 per month if I don't collect until my FRA (currently age 67 - will it change before I get there?) I can boost it a little more by staying employed, but I'm at a point of diminishing returns now that I've worked a minimum of 35 years I am being very pessimistic with my calculations and assuming that I will only see 60 of my expected benefit at FRA or about $2,400 per month (in 2024 dollars) because the Social Security trust fund will run out before I am eligible to collect That won't pay for much at all
Comment from : @KayKay14m

Thanks for the info! Your videos always do a great job at simplifying financial topics so they are easily understood!
Comment from : @jacquelynahin

I wouldn't and don't count on much brThe system is near bankrupt
Comment from : @rkw2917

So… Basically it’s a Ponzi scheme, got it
Comment from : @johnja9017

FYI: I didn’t realize that when I applied for SS at my retirement age of 66 & 6 months that I would not start getting SS until 2 months later, and that my net amount was after Medicare Part B was deducted(17470)
Comment from : @steveboynton1392

I loved your ending Thanks for keeping this all light hearted I watch all your videos! Thank you!
Comment from : @LoriLWorden

Thanks for the video I never knew what the rates were for the various intervals defined by the bend points
Comment from : @JBoy340a

So, the higher earner doesn't have double the money to spend They pay a higher tax while working and have to invest more to have a comfortable retirement
Comment from : @Dave-sw2dm

Might be worth mentioning that if you have other regular income that was not subject to FICA deduction (eg, social security from another country), WEP might affect you This means instead of 90 before the first bendpoint, SSA will use only 40 for the Social Security calculation This makes a big difference
Comment from : @schubser3327

Nice job explaining how the bend points work! Would love to see you do another video and go through the spousal benefits, esp how those benefits are impacted by when you file Thx!!!
Comment from : @waltbutler9207

Looks like bend points increase (adjust for inflation) each year, correct? Are they applied up to the point of claiming? or up to the point of FRA? or eligibility (62)?
Comment from : @jimmassey2120

Every paycheck after maxing the years worth of SS is oh so nice! More to pay off the house!
Comment from : @Krazybonejabs

One thing I'm not clear on What about larger earnings, earned past your FRA How do these impact PIA? (ie between 66-70)
Comment from : @artimuscoffee8921

Finally I could understand how it works! Thank you!
Comment from : @yoonk8627

Lions just use their statement value & subtract 20
Comment from : @Lion_McLionhead

I can't wait till I'm elible for Social Security
Comment from : @MattPrice2023

Suggestion - You should have explained the 'Index for Inflation prior to 60 years' in the beginning of the video and included that in your $$$ example As your video stands, it is incorrectly stating that someone who has earned $50,000 every year for 35 years will have AIME of $4,16667 They will have a much higher number than that because of the Index multiplier for every year prior to their age of 60
Comment from : @ManishSabu-c7n

Everyone is eligible to collect upon reaching their 62nd birthday, yet nobody can because of SSAs funny math True story
Comment from : @garybernier7293

I wish I could opt out of contributing to & receiving SS You can keep what I’ve contributed so far
Comment from : @somehandle215

What a scam They know that the majority of citizens will never get the money they invested
Comment from : @djcoolrule

Anybody know when these bend points were introduced? Or caps on taxing income?br What politics are here?
Comment from : @SandfordSmythe

Social Security is a welfare program It’s just not called welfare brbrThis is why I get upset when I hear politicians talking about how bad it is that people who earn more having more saved in their 401k plans than people who earn less have saved Social Security pays less the more we earn so people who earn more need to save more outside of Social Security than people who earn less need to save
Comment from : @tscoff

Great video Most people do not know that the calculation is progressive br(Of course, many many people do not even understand progressive income tax tables either)
Comment from : @shawnbrennan7526

The 35 years combined with the earlier years being adjusted, and taking into consideration the bend points, really reduces the value of "work another year to increase my social security benefit"brbrDo the math and figure out how much your benefit would go up Or if not the math, at least consider, will you hit the maximum OASDI tax before the end of the year? No increased benefit working past that Will your income your next year replace a significantly lower earning year (or a $0) from your 35 top years? If not, remembering the earlier years are adjusted more, no increased benefit working that year If your next year will replace a lower earning year, figure your percentage benefit depending on your bend point for each dollar that next year Eg if you quit when hitting the maximum OASDI tax you are only getting 15 of your earnings in added benefit past replacing the lower earning yearbrbrI did the math, and I figured I could work thru March and get the annual bonus and the year to date earnings would replace a low year in my 35 No reason to work any longer than that If I worked the entire year it would not make a more significant increase to my social security benefit
Comment from : @Sylvan_dB

Hi Erin Kudos on your excellent video today You did an outstanding job of breaking down and explaining the nuances of how SS is actually computed This is an area that few people fully understand This will be a valuable resource to your viewers and be very helpful in their planning You are a born teacher Erin, it seems to come natuarally to you Keep up the quality content Good bloopers today Have a blessed week and I"ll see you on the next one Larry, Central Valley, Ca
Comment from : @ld5714