October 21, 2020

Social Security Calculator – How Much Will You Get?

As a person works through their life they pay into the Social Security System. This system provides a partial retirement income, for people, based on the amount they have contributed to the system and the credits that are earned. The amount paid into the system depends on what the person’s salary was during their work life. The figures are compiled and the total amount of the benefit check is calculated based on a social security calculator system.

Those who have earned a high salary, for a long time, will receive a higher benefit check then those who have worked at low paying jobs. The SS website has a quick calculator, online calculator and downloadable calculator anyone can use to figure their benefits. This as an easy way to determine the amount of the benefit.

Benefits depend on how much one has earned, their age, and their citizenship. Currently, a person can apply for Social Security benefits at the age of 61 years nine months. This is not the official retirement age. People who qualify for benefits, and apply at this age, will receive a lower benefit amount then they would if they waited. The only benefit of doing this is that they receive a check over a longer period of time.

The age at which one receives full benefits depends on their date of birth. Those who were born in 1937 or earlier can get full retirement at age 65. Those born in 1960 or later must be 67 years of age to get the maximum amount. A person born between 1938 and 1959 has their benefits calculated on an age chart.

To be able to qualify for benefits a person must earn a certain number of credits during their work lifetime. This is determined partially by the date of one’s birth. Those born in 1929 or later need 40 credits(or 10 years of work) and those born before 1929 need fewer than 40 credits.

When a person pays Social Security taxes they earn a maximum of four credits a year. These credits have been calculated at the years before 1978 and after 1978. Prior June 1978, credits were calculated on a three month basis. A credit was received if at least $50.00 was earned during that quarter. Since 1978, earnings have been reported once a year with credits being based on total wages, or self employment income, for the entire year. This way a person might earn the needed credits in a short period of time or over the entire year.

In 2010 a person must earn $1,120 to get one Social Security credit, and $4,480 to receive the maximum of four. It is the average earnings over the entire working years that determine the monthly benefit. Extra credits do not increase the benefit. Over $100,000 of wages are now charged Social Security taxes each year.

The total work years needed to be eligible for retirement benefits, for people born in 1929 or later is 10 years. Those born before 1929 need fewer work years. There are survivors benefits for certain members of a family if the deceased has worked at least 10 years. If the deceased is young and has worked at least 1-1/2 years, in the three years prior to their death, survivors’ benefits may also be paid.

Also, the government provides handy online Social Security Calculators for you to find out how much you’ll receive, as well as plan ahead for retirement:  http://www.ssa.gov/planners/calculators.htm

Speak Your Mind