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Investing/Strategies / Retirement Investing
|Subject: Re: Retirement savings benchmark||Date: 1/22/2013 3:00 PM|
|Author: pauleckler||Number: 71295 of 73907|
If you earn $50K per year, that's $4167/mo gross pay. 70% is 2916/mo. Social Security reduces that by abt $1200/mo. Net is 1717/mo. That is 41% of gross.
Not sure I understand what this means... In my own case, I can figure 33,480/year SS. And I also figure about $33,000 pension. But, in planning, I've always just added the two together -- but is it correct that SS actually reduces the pension?
No, Social Security does not reduce your pension.
My figures are the ones companies use when they make their defined pension benefit plan. They try to replace 70 to 80% of your gross pay from the sum of your pension benefit and your Social Security payments. My figures show how that 70% of gross becomes an actual 41% of your pay.
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