Updated
Updated · 24/7 Wall St. · Aug 16
Former NFL Player Finds 3 High-Paid Seasons Barely Lift Social Security Under 35-Year Rule
Updated
Updated · 24/7 Wall St. · Aug 16

Former NFL Player Finds 3 High-Paid Seasons Barely Lift Social Security Under 35-Year Rule

2 articles · Updated · 24/7 Wall St. · Aug 16

Summary

  • Three NFL seasons did not sharply raise the former linebacker’s expected Social Security check because benefits are based on a worker’s highest 35 years of indexed covered earnings, with zeros filling any missing years.
  • In 1985, even a $250,000 football salary would have counted as only $39,600 for Social Security because earnings above that year’s taxable maximum were neither taxed nor credited toward benefits.
  • Thirty teaching years matter only if that job was covered by Social Security; if not, those wages do not enter the calculation, and three NFL seasons alone would usually fall short of the 40 credits needed.
  • The repeal of the Windfall Elimination Provision removed one potential benefit cut for workers with noncovered pensions, but it did not turn noncovered teaching pay into Social Security earnings.
  • Another year of covered work can replace a zero or low-earning year, while extra pay above the annual Social Security ceiling in the same year adds nothing to the retirement formula.

Insights

Why do million-dollar professional sports paychecks often result in surprisingly small Social Security checks for retired athletes?
Could replacing just one zero-income year in your work history secretly unlock a much larger Social Security payout?