The amount of Social Security benefits you can claim depends on how much you earn. The government calculates this by multiplying your average indexed monthly earnings by ninety percent. The remainder up to $6,172 is multiplied by three2%. The excess is taken from that figure, and the sum is your initial payment amount. If you have delayed your retirement, you can also take advantage of cost-of-living adjustments and delayed retirement credits.
To estimate your benefits, first determine your full retirement age. Social Security is based on the 35 years of highest earnings. This number is adjusted for inflation. If you worked fewer than 35 years, you’ll get smaller payments. For younger workers, the same is true. But if you worked longer than thirty-five years, you’ll receive larger payments. This will reduce your total benefits. However, if you worked for more than forty years, you’ll get more benefits.
Currently, Social Security is facing some challenges in meeting the needs of millions of retirees. The recent recession has slashed savings and jobs. Many people rely on this system for retirement benefits. To help combat these challenges, the government is proposing several solutions to ensure the sustainability of the program for future generations. While the program remains stable for the foreseeable future, it may not be as generous as it is today. So, if you want to receive more benefits at retirement, work on your personal retirement savings and increase your savings.