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Social Security benefit calculation penalizes missing earning years
If you have fewer than 35 years of earnings, Social Security effectively treats gaps as $0, lowering the benefit calculation permanently unless addressed.
Yahoo Finance highlights a little-known feature of Social Security’s benefit formula: it is calculated using a worker’s highest 35 years of earnings, with any missing years counted as $0.
The outlet notes that career breaks for caregiving, illness, or schooling can create earning gaps that reduce monthly retirement benefits over time if not addressed.
Yahoo Finance also says older claimers can increase their checks by delaying Social Security claims, with the program providing an 8% annual boost for delaying benefits until age 70, or by continuing to work, including part-time retirement jobs.