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And higher income earners do, too.

From some old notes:

A. Social Security is expected to replace about 40 percent of pre-retirement earnings of average earners; 80 percent for the lowest earners; and 27 percent for those at the maximum taxable wage base of $80,400 [2001], according to the Social Security Administration.

While it does look like high income earners are getting whacked, it certainly doesn't feel that way. The lowest earners probably need that 80% of their pre-retirement savings because they either didn't save anything for retirement or didn't have any excess funds to invest. While 27 percent of pre-retirement earnings look low for those at the maximum taxable wage base, it may represent a good portion of their post-retirement income needs. Personally, SS will cover most of my income needs with only small withdrawals from my retirement accounts. I'll be living far below my pre-retirement income.

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