Retirees with incomplete work histories face reduced benefits as Social Security replaces missing years with $0 in its calculation.
Social Security benefits are calculated using the highest-earning 35 years of work, with $0 counted for any missing years. This can significantly lower monthly payments for retirees with fewer than 35 years of earnings.
The formula adjusts for wage growth but does not account for partial work histories. Retirees who worked less than 35 years may see reduced benefits unless they extend their careers to replace low-earning years.
Married retirees with short work histories can opt for spousal benefits, worth up to 50% of their spouse’s primary insurance amount, as an alternative.