Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Social security benefits- what is max payout you have "seen"
Old 11-22-2010, 06:11 AM   #1
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
Social security benefits- what is max payout you have "seen"

I was in a conversation in my tax class about SS benefits.

The discussion centered around two issues

1) what is the current "highest" benefit the system pays out (is there a table or similar which shows this)?

2) what benefit has been promised to those of us which are still w*rking for next 20 years? And how does this number compare to #1?


Meaning my benefit for working 15 years (post college as a professional) plus 7 years as a grunt in HS and college has a benefit of about $2700/mo (that is 32k per year for one person). But no one in the class had ever seen anyone collect that much SS, so there is obviously a curve/timeline for when benefits that high start phasing in. Anyone know where this data is?
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-22-2010, 06:14 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,000
I'm guessing you've seen this: Social Security Benefit Amounts
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 11-22-2010, 06:24 AM   #3
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Here's one reference:

Maximum-taxable benefit examples

BTW, I'm 62, retired, and planning not to file for SS till age 70. My existing benefit at that age (based upon my personal contributions over my "best" 35 years), is in excess of $3k/month (over $36k/year), at that time, accounting for my longevitiy credits.

Of course, if inflation kicks in and adjustments are made to that amount, it will increase slightly.
rescueme is offline   Reply With Quote
Old 11-22-2010, 10:02 AM   #4
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
Quote:
Originally Posted by REWahoo View Post
I'm guessing you've seen this: Social Security Benefit Amounts
I read that after you posted it. Thank you.

I think this is what I was after

Quote:
(a) 90 percent of the first $749 of his/her average indexed monthly earnings, plus
(b) 32 percent of his/her average indexed monthly earnings over $749 and through $4,517, plus
(c) 15 percent of his/her average indexed monthly earnings over $4,517
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 11-22-2010, 03:58 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 4,629
I thought rescume's table was the answer. The formula bend points are only useful if you know the maximum possible AIME. But it looks like you really want to understand the formula.

Regarding #2, if you read through the way they index benefits, and compare the average wage to the maximum taxable wage, you'll notice that they have been pretty much parallel for the last 25 or so years. But prior to that, that maximum was closer to the average than it is today. Since SS uses the highest 35 years, those earlier years are keeping the maximum benefit down a little. That effect is going to wear off over the next decade or so.
Independent is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Social Security - When to start benefits.. walkinwood FIRE and Money 250 05-01-2012 01:01 PM
Social Security Needs Small "Tweaks" Purron FIRE and Money 46 05-19-2010 08:53 PM
Social Security Spousal Benefits ocdude FIRE and Money 19 05-15-2008 11:33 AM
Maximizing Social Security Benefits eyenitnoy FIRE and Money 20 06-18-2006 08:29 PM
Another commentary on Social Security "Reform" Hyperborea Other topics 11 01-29-2005 09:31 AM

» Quick Links

 
All times are GMT -6. The time now is 12:42 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.