Learn how the Old-Start Method can affect your Social Security Retirement Benefits.
https://www.ssa.gov/OP_Home/cfr20/404/404-0242.htm
The Old-Start Method is a way to calculate Social Security Retirement Benefits for those who do not have enough work credits under the Average Indexed Monthly Earnings (AIME) method. In this blog post, we will discuss how the Old-Start Method can affect your benefits and explain how your Old-Start Primary Insurance Amount can serve as a guaranteed alternative to the AIME method. We will also look at some of the limitations of the Old-Start Method and provide tips on how to make the most of your Social Security Retirement Benefits.
If you qualify for the Old-Start Method, your Primary Insurance Amount will be calculated based on your earnings from 1937-1950, and any automatic cost-of-living or ad hoc increases. If your Old-Start Primary Insurance Amount is higher than your AIME-based Primary Insurance Amount, then it will be used as the guaranteed alternative to your AIME-based Primary Insurance Amount. However, any earnings you have in or after the year you reach age 62, become disabled, or die before age 62 will not be used in an Old-Start computation in this situation.
It’s important to note that the Old-Start Method has some limitations, such as not accounting for any earnings you have after 1950, and not being available for those who have had a period of disability before 1951. To make the most of your Social Security Retirement Benefits, it’s essential to understand the different methods available to you and how they can impact your benefits.
In conclusion, the Old-Start Method can be a helpful alternative for those who do not have enough work credits under the AIME method. By understanding how the Old-Start Primary Insurance Amount can serve as a guaranteed alternative, you can better plan for your retirement and make informed decisions about your Social Security benefits.