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2: Social Security Benefits

Last updated over 1 year ago
7 questions
1

Currently we as Americans pay 7.65% of every paycheck to the FICA taxes (Social Security and Medicare). When we are older, we get to use these services to recieve money from the government! If someone makes $4000 a month, how much of this paycheck will go to FICA taxes?

1

In order to qualify for SS benefits, you must earn 40 SS credits.
In 2023, you will earn 1 credit for every $1640 made.

How many weeks will it take someone to earn his 4 yearly credits if they make $25 an hour and work 40 hours a week?

Use the following steps to determine the Social Security payout in 2024:

First, determine the average monthly wage of your 35 best paid years (this is called your AIME).
90% of the first $1174 of your AIME
Plus 32% of any amount between $1174 up to $7078
Plus 15% of any amount over $7078
1

Suppose Madison's AIME (Average Monthly Wage) is $6000. Determine her monthly full retirement benefit from Social Security.

1

Suppose Vincents AIME (Average Monthly Wage) is $6600. Determine his monthly full retirement benefit from Social Security.

Maximum Social Security Benefits
The earliest you can start receiving your social security benefits is age 62 but if you wait until 70, you will earn the most. Observe the following:

If you start collecting benefits at age 62, there is a 30% reduction
If you start collecting benefits at age 63, there is a 25% reduction
If you start collecting benefits at age 64, there is a 20% reduction
If you start collecting benefits at age 65, there is a 13.3% reduction
If you start collecting benefits at age 66, there is a 6.7% reduction
If you start collecting benefits at age 67, there is a 0% reduction
If you start collecting benefits at age 68, there is a 8% increase
If you start collecting benefits at age 69, there is a 16% increase
If you start collecting benefits at age 70, there is a 24% increase
1

Suppose Amy calculated her monthly full retirement benefit amount to be $2400. What will the monthly benefit amount be if she decides to collect early at age 65?

1

Suppose Amy calculated her monthly full retirement benefit amount to be $2400. What will the monthly benefit amount be if she decides to collect late at age 70?

1

Suppose Bellas AIME (Average Monthly Wage) is $5000.
Determine her monthly full retirement benefit from Social Security.
How much will she receive if he decides to start collecting at age 69?