No. of Recommendations: 2
I'm not sure why the first link showed higher values up to $150k

The table in your link was making assumptions on benefits based on income in the years close to retirement age. Your benefits are based on the average of your 35 highest earning years. So the estimate is made assuming that a person earning just enough to make the maximum contribution in the near retirement years probably didn't do that for 35 years. A person making $150K a year will have made the maximum contribution for most of those 35 years and will thus have contributed more over those years than one earning $110K.

Your overall point is well taken and often forgotten in the discussions on these boards. There is a certain sense of outrage that Social Security taxes are capped. What's generally ignored is that the benefits are capped as well.

Furthermore, the benefits are progressive in that they replace a larger percentage of a lower earner's income than a higher earner's.

This was, of course, the original design of Social Security. It was meant to benefit everyone rather than to function as a welfare program.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.