Top 10 Questions High Net Worth Individuals Ask About Social Security
Social Security, the program you may have spent a lifetime paying into, is designed to offer stability, supplemental income, and other valuable benefits that can play a role in your overall financial strategy after you retire. We've pulled together answers to 10 questions our clients ask most frequently regarding Social Security. If you are nearing retirement, this Q&A is designed to help you better understand what to expect from Social Security. 1. How are Social Security Benefits Calculated? Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. Social Security applies a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual. In general, the higher your earnings (up to $160,200, the maximum taxable amount in 2023), the higher your [...]