Social Security is a vital pillar of retirement for millions of Americans. However, there is a common misconception that it is an acquired right.
It actually depends on your work history and contributions made through taxes. For the lower class population, the outlook can be grim.
This is because their lower income translates into lower benefits.
How much does the lower class receive?
As of March 2024, the average Social Security retirement benefit was $1,864.52 per month. The maximum payout for beneficiaries in 2024 is $4,873 per month, but it is only reached with very high wages over 35 years.
An analysis by the Center on Budget and Policy Priorities (CBPP) found that the average annual Social Security benefit for a low-income person (earning 45% of the median wage) who retires at age 65 is $14,824.
This equates to a monthly average of $1,235, approximately two-thirds of the overall average benefit.
How does it work?
Payment is calculated based on the average monthly earnings indexed for up to 35 years of work. The 35 years of highest earnings are taken into account for the final calculation. Those who work less than that time will see their benefits reduced.
What does this mean for the lower class?
For the lower class, Social Security represents a crucial source of income in retirement, but it is not enough to maintain a comfortable standard of living.
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It is important to consider other forms of savings and investments to complement these benefits and ensure a dignified retirement.
The Social Security Administration (SSA) offers online tools to help you calculate your estimated benefit:
With information from La Opinion.
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2024-07-04 09:19:11