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Not sure if I understand correctly but in my own situation the amount of SS pension I receive is based upon a algorithm/percentage of how much in total I have contributed through paychecks over my working life. I didn't get it all back per se because but I do get pension checks until I die which could be 20-30 years later. The total amount you contributed feasibly would not last that long.
In my case I googled the SS (government) website and found out what amount (min-max) I would expect to get at age 65. But until I got my last paycheck and made my final contribution to SS, I was not able to find out the exact amount.
Not sure if I understand correctly but in my own situation the amount of SS pension I receive is based upon a algorithm/percentage of how much in total I have contributed through paychecks over my working life. I didn't get it all back per se because but I do get pension checks until I die which could be 20-30 years later. The total amount you contributed feasibly would not last that long.
In my case I googled the SS (government) website and found out what amount (min-max) I would expect to get at age 65. But until I got my last paycheck and made my final contribution to SS, I was not able to find out the exact amount.
I contributed into SS from the mid-1970s until I retired in 2001. Then when I reached 62yo [in 2021] I had to log-on to the SSA.gov website that they showed me all the annual earnings that I had claimed each year.
The SSA.gov website also projected how much SS benefit I would get if I applied to start receiving at age 62, and again if I applied at my FRA [66y 10m], and again if I applied at age 70.
In all three cases, if I took my SS benefits up until I reach age 80, the total sum of benefits I would be paid came out to around $200k.
There was no advantage to selecting any one of those three dates over the other two dates.
I contributed $20k and some change, and if I live to 80yo I will have received a hair over $200k in benefit.
In my case, I will get back every penny, plus a ten-fold increase.
I contributed into SS from the mid-1970s until I retired in 2001. Then when I reached 62yo [in 2021] I had to log-on to the SSA.gov website that they showed me all the annual earnings that I had claimed each year.
The SSA.gov website also projected how much SS benefit I would get if I applied to start receiving at age 62, and again if I applied at my FRA [66y 10m], and again if I applied at age 70.
In all three cases, if I took my SS benefits up until I reach age 80, the total sum of benefits I would be paid came out to around $200k.
There was no advantage to selecting any one of those three dates over the other two dates.
I contributed $20k and some change, and if I live to 80yo I will have received a hair over $200k in benefit.
In my case, I will get back every penny, plus a ten-fold increase.
I contributed to SS starting in middle school; every summer for decades; and full-time for years. I then taught school in California for 32 years but SS was not collected for that job. I continued to pay into SS every summer, and with my new job teaching in Hawaii for the past 8 years. I have well over 40 quarters.
I receive a California pension (CALSTRS) but will receive a much-reduced SS check because of the Windfall Elimination Provision, which Congress enacted in 1983.
Of course it's been answered and quite well by a handful of posters. You pay in some money, your employer pays in some money and you have an old age benefit for life.
What could be better and simpler? It's worked very well since it was implemented.
The OP asked for an answer to a complex question. Wanting a breakdown of where the money comes from that constitute their benefit amount. OP was under the impression that SS works like an investment account, with a definitive amount of money, in a beneficiary's name, itemized as to what the source of the money is. There is no answer to such a question.
The most practical reply, would been to have told the OP, to access their SS online account, and see what they and their employer(s) have contributed, by looking at their earnings statement. I would have done that, but by the time I got here, the thread had digressed into a political debate.
The real truth is nobody can cut their spending like retirees. As you get 5-10 years older spend less on travel, gas. Spend less on clothing. Spend less in insurance, investment. Spend less on food at home & not out & maybe not eat as much. Sure spend more on health care depending on your Medicare plan. Wait for the new Plan D prescription plan takes effect. Be nice if MOOP was $2000.
As for Social Security one thing retirees do is vote. Woe be to the guy that cuts their benefit.
Well, it's kind of sad that they don't really understand that their benefit HAS been cut.
We've all watched this happening for a solid 60 plus years now.
When is the last time you saw two for a penny candy or a ten cent bottle of Coca-Cola from a vending machine? I have a photo taken of me when I was 5 years old, that would be the summer of 1954, where I was standing in front of a Coca-Cola vending machine and the price was five cents for a bottle. Picture was in Arizona we were car traveling from Missouri to Riverside, CA and we spent the night at a motel.
Strange thing is I can't remember much about the trip other than it was very hot but I do have the photo. It was the days before cars had seat belts or air conditioning. Imagine July in Arizona without air conditioning or the interstate to travel on. Highway 66 the whole way!
It was the days when everyone had fans in their bedroom windows.
Here's my reported income for the first ten years of my working life.
I wasn't in total poverty as in 1975 $5,850 is equivalent to $32,204.47 today adjusted for inflation. I was single and doing fine.
In 1976 I changed careers, from flight instructing to designing fire sprinkler systems, and got serious with income. My best money years were the 1980's when I had earnings above the social security limits as in 1988 when the max earning was $45,000 and 1989 when the max earning subject to SS tax was $48,000. It was kind of neat I remember I sort of got a "raise" in August when they stopped deducting SS tax from my paycheck. I paid 7.51% of $48,000 which was $3,604.80 plus $3,604.90 self employment for a total of $7,209.60. Adjusted for inflation $7,209.60 in 1989 is equivalent to $17,219.96 today so I did pay into social security earning my benefit.
What I would like to see is a voluntary SS contribution so someone that works hard, a construction worker, can retire earlier than his FRA if they so want to do so. Maybe an extra 1% tax will allow a FRA of 66 instead of 67? Paying an extra 5% might lower the FRA to 60?
I've seen plenty of roofers in my day and at 65 most can't do the work anymore, it's to hard, and many would simply be unsafe atop a roof. Not sure of the numbers but I would like to see something like that.
Yes, but there is a big difference between 2% and 9% inflation. AND they changed how they calculated it. So most people know the real number is much higher. But you can tell me I am just longing for the good old days. The good old days for us were 2019.
What leaves you to believe I "don't seem to like the answer". I never asked a question.
Because you said "Three pages of hot air, to answer a question that has no answer." - it has an answer and was already posted so if you think it "has no answer" you just must not like the answer.
Why post at all if just going to claim ignorance of what YOU posted.
The OP asked for an answer to a complex question. Wanting a breakdown of where the money comes from that constitute their benefit amount. OP was under the impression that SS works like an investment account, with a definitive amount of money, in a beneficiary's name, itemized as to what the source of the money is. There is no answer to such a question.
That's why I answered the way I did. For most people, what they pay in is somewhat irrelevant because- if you live long enough- you will get back a lot more than you paid in.
Naturally monthly amounts will vary as to the individual. And you're right that if a person really wants to check for their immediate circumstance, they should log in to Social Security.
But again, SS depends on whether a person dies tomorrow or lives to 103 as to an overall pay out.
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