Q: I have an offer to help build a new company and, if I accept it, for at least several years my earnings will be much lower than now. Can I estimate how lower earnings will reduce my future Social Security retirement?
A: Yes. Estimate the effect of lower and higher future earnings with the Retirement Estimator at http://www.socialsecurity.gov/estimator/. The Retirement Estimator, one of the Social Security online retirement planning tools at http://www.socialsecurity.gov/retire2/, connects to your actual Social Security earnings record to provide personal retirement estimates at age 62, at your full retirement age, and at age 70.
The initial Retirement Estimator reply assumes that your most recent wages or self-employment earnings continue at the same amount into the future, but you can change this to obtain estimates at different ages and different future earnings amounts. Comparing your estimates for the same age based on the initial earnings level and then with lower or higher earnings provides an approximate result of different earnings on your future Social Security retirement amount. Using separate estimates, you can estimate future benefits based on either lower or higher earnings. Future earnings of more than one amount cannot be used in one estimate.
You can use the Retirement Estimator if you are enrolled in Medicare, but not if you are now applying for or receiving SSA benefits.
Social Security retirement is based on your best 35 years of employment and your age, in months, compared to your full retirement age. You can get estimates at different ages with the Retirement Estimator. For specific months, other online tools are available in the retirement planner section, http://www.socialsecurity.gov/retire2/.
The Retirement Estimator reply does not show personal information or your earnings record. To see your earnings record, establish a my Social Security account at http://www.socialsecurity.gov/myaccount/ and view your Social Security Statement.