Forum Thread

proper benefit amount?

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  • Tdutch
    2015-11-05 12:31:37 PM
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    Is there a way to confirm that someone is receiving the maximum amount that they can receive for Social Security?

  • JaredS
    2015-11-05 05:37:51 PM
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    Are you worried that you aren't receiving the proper amount of benefits?

    Your benefits are calculated based on a variety of things, most importantly how many years you worked, how much you put into Social Security, and how early you began drawing your benefits.

    I'd suggest looking over an article that the Social Security Administration released explaining how your benefits are calculated.

  • Tom
    2015-11-10 11:20:29 PM
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    I retired (Self Employed) in March 2014 but continued to work. In 2013 I paid $16,000 into SS and Medicare. My SS check increased $29.00 per month in December 2014. In 2014, I paid $15,000 into SS and Medicare. My check increased another $29.00 for that year. I paid a total of $31,000 additional dollars into SS and Medicare in the past two years and I get a total increase to my check of $58.00. I would think, my lowest paid years in 1980 and 1981 would be bumped out by my latest much higher paid years and my check would increase significantly. What is amount to is I receive $28,000 in Social Security per year. I pay $15,000 per year into social security, plus I pay about $4,000 in taxes on my SS benefits. Hence I am paying $19,000 into social security and income taxes to received $28,000 in benefits. Thus I actually net only $9,000. Is that the way the system works? I am planning to contact SS but it takes weeks to get an appointment.
  • LivingWanOlderGal
    2016-02-04 02:11:35 PM
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    If you are computer savvy, you can download the "Any PIA" software from SSA.gov and it will show you exactly how the benefit is calculated. You will need to input your complete salary. If you do not have that already, you can get it by creating an online account. Generally speaking, benefits are weighted heavily to lower income based on a 35 year indexed career average. There are 2 "bend points", where your indexed average compensation is split into three pieces. The PIA, which is the benefit at full retirement before an early retirement discount or delayed credits, is determined by taking 90% of average compensation up to the first bend point, 32% above the first bend point up to the second bend point, and 15% over the second bend point. The current software for 2015 has the bend points at $826 and $4980. These amounts are indexed, I think for national average wages. You are likely already above the second bend point and are not getting much for your additional earnings. Hope this helps.
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