The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early Liberal Edition


Subject:  Re: Fun with Social Security Date:  11/27/2012  5:53 PM
Author:  doubtit Number:  46404 of 139003

If I continue to get $9,000/yr in FICA earning for the next 9 years until I'm 65, I'll pay about $9,000 in FICA and my monthly Social Security benefit will increase by $45/month.

Imagine my surprise when I learned a $45/month annuity from an insurer costs $12,000 at today's rates -- $3,000 more than I'd pay in FICA taxes for the same benefit

Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings.

You might want to check your math - If your average earnings for the 1st 26 years you worked was indexed at less than $9000, then $9000 for the last 9 years might increase your SS benefit

For me, $9000 for the last nine years prior to 65 that I work = $0 increase for me
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us