Retirees with fewer than 35 years of earnings face reduced monthly benefits as missing years count as $0 in calculations.
Social Security benefits are calculated using the highest 35 years of earnings, with any missing years counted as $0. This rule can significantly lower monthly payments for those with career gaps due to caregiving, illness, or education.
The formula indexes earlier earnings for inflation but excludes lower-earning years if a career spans more than 35 years. Workers with incomplete histories may see permanent reductions unless they extend their careers or delay claims.
Delaying Social Security until age 70 can boost benefits by 8% annually, while part-time work in retirement may help fill earnings gaps.