Quote:Out of curiosity, how does SS pay out now? Is it a flat sum for every individual or is it different based on certain criteria or metrics?

 

IIRC, it's a complicated formula that is capped at a certain amount based on how long/how much that you have paid into the system, as well as your age and the age that you start drawing it.  As an example, if you were born after 1960 and you retire at 62 1/2, you can draw Social Security, but it's only 70% of the "max amount" that could be available to you.  Say you wait until you are 65 to start drawing Social Security.  You would then draw a higher percentage (86.7%) that you qualify for.  In order to draw the maximum amount, you have to wait until you reach 67.  Think about that and let it sink in.  Working until you are 67 years old.

 

EDIT:

My numbers may not be entirely accurate, but this website lists the figures for someone retiring this year.  If you are at full retirement age you would get $2,663 per month.  If you wait until you are 70, then you would get $3,501 per month (before taxes).

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