SHIFT Daily News

News

How Do Your Social Security Earnings Compare to the Average American?

How Do Your Social Security Earnings Compare to the Average American?
December 22
19:59 2015

For Americans who receive Social Security benefits, the program makes up a huge part of these individuals’ incomes. Although the exact amount varies due to a number of different factors, the average American receives about $1,225 per month (around $14,700 per year) from Social Security.

So before you start comparing how much you’re taking in to the $1,225 a month, it’s important to know the average for each category of individuals who qualify for Social Security. The most common type of Social Security recipient is of course, a retired worker, and the least common is the parent of a deceased worker. Here’s a breakdown of the annual averages by each category:

Retired workers- $16,100

Disabled workers- $14,000

Non-disabled widowers- $15,400

Spouses of retired workers- $8,200

Children of deceased workers- $10,000

Other- $5,700

Now that you can compare yourself to others within your group, it’s important to know how Social Security payment amounts are determined. Let’s take a look at the retired workers group.

What you earn will be based mainly on how much you made during your working years. If you became eligible (by reaching age 62) in 2015, these amounts will apply to you, otherwise they may differ slightly:

  1. Take the average of your 35 highest earning years, and adjust for inflation.
  2. From this number, you will receive a 90% credit for the first $9,912, which equals around $8,900.
  3. Next, still keeping that value from step one in mind, you receive a 32% credit for anything between $9,912 and $59,760, which will equal up to another $15,950 annually.
  4. If your value from step one is above $59,760, you will receive a 15% credit for anything higher $59,760.

Remember, the earlier you take your benefits, the less you take home, so this only applies to people at the age of 62. Be sure to research all options before you file for Social Security to make sure you’ll get the most out of your money.

478 total views, 1 views today

About Author

Mina Sinai

Mina Sinai

Related Articles

[^@s]
[^@s]
[^.@s]
[^.@s]
[^@s^.]
[^@s^.]