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Subject:  Re: social security Date:  2/4/2012  2:46 PM
Author:  intercst Number:  70106 of 88826

StockGoddess writes,

Firned of mine explained this to me how she decided not to take a job overseas - one of her reasons was how those "zeros" would affect her SS in the long run.

That's odd. Most overseas posts come with a salary increase far in excess of a zero on your SS earnings record. Here's an analysis of how much you'll lose by retiring early and having "zeros" in your record.

For example, for someone paying the maximum FICA for his whole career. Retiring with 35 years of earnings gives him a benefit of $1,964/month. If he retires 5 years earlier and had 5 zeros in his earnings record, it only reduced the benefit to $1,888. That's a $76 month reduction for 5 years worth of zeros. A 60-year-old could buy an inflation-adjusted annuity with a $76/month benefit for about $24,000.


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