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URL:  http://boards.fool.com/intercst-quotfor-2013-the-maximum-social-30499636.aspx

Subject:  Re: Retirement savings benchmark Date:  1/22/2013  3:22 PM
Author:  JAFO31 Number:  71297 of 75338

intercst: "For 2013, the maximum Social Security benefit at age 70 for a worker who paid max FICA since age 22 is $3,350/month.

http://www.ssa.gov/oact/cola/examplemax.html "


I see the chart, but fail to see what age 22 has to do with anything. SS benefits are based on best 35 years of earnings, so those retiring at 62 would have needed to paid maximum FICA since age 27; those retiring at 65 would have needed to paid maximum FICA since age 30, and those retiring at age 70 have needed to paid maximum FICA since age 35; the other earlier years would be irrelevant.

"Your actual earnings are adjusted or “indexed” to account for changes in average wages since the year the earnings were received. Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or “primary insurance amount” (PIA). This is how much you would receive at your full retirement age — 65 or older, depending on your date of birth."

http://www.ssa.gov/pubs/10070.html

Paying maximum FICA for more than 35 years does not increase SS benefits.

Regards, JAFO
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