Retirement Planning
4 months ago
How does Social Security 'bend points' work and why does it matter for FIRE?
38
I'm pursuing FIRE and may only work 20 years total. Social Security uses your highest 35 years of earnings, and zeros count for years you didn't work. But I've also heard about 'bend points' that replace a higher percentage of income for lower earners. How do bend points affect someone who retires early with only 20 working years? Is Social Security's benefit formula progressive enough that early retirees still get decent benefits?
DR
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