- Social Security income
- Social Security is based on a sliding scale depending on your
income, how long you work and at what age you retire. Social
Security benefits automatically increases each year based on
increases in the Consumer Price Index. Including a spouse increases
your Social Security benefits by 1.5 times your individual
estimated benefit. Please note that this calculator assumes that
only one of the spouses work. Benefits could be different if your
spouse worked and earned a benefit higher than one half of your
benefit. If you are a married couple, and both spouses work, you
may need to run the calculation twice - once for each spouse and
their respective income. This calculator provides only an estimate
of your benefits.
The calculations use the 2008 FICA income limit of $102,000 with
an annual maximum Social Security benefit of $26,220 per year for a
single person and 1.5 times this amount for a married couple. To
receive the maximum benefit would require earning the maximum FICA
salary for nearly your entire career. You would also need to begin
receiving benefits at your full retirement age of 66 or 67
(depending on your birthdate). Your actual benefit may be lower or
higher depending on your work history and the complete compensation
rules used by Social Security.
- Current age
- Your current age.
- Age of retirement
- Age you desire to retire.
- Household income
- Your total household income. If you are married, this should
include your spouse's income.
- Expected salary increase
- Annual percent increase you expect in your household
income.
- Expected rate of inflation
- What you expect for the average long-term inflation rate. A
common measure of inflation in the U.S. is the Consumer Price Index
(CPI), which has a long-term average of 3.1% annually, from 1925
through 2007. The CPI for 2007 was 2.4%, as reported by the
Minneapolis Federal Reserve.
- Are you married?
- Check this box if you are married. Married couples have a
higher maximum Social Security benefit than single wage earners.
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