By Manuel Tovar, October 06 – Hispanic Solutions Group
According to official information it is known that, Social Security offers a monthly benefit check to many types of beneficiaries. In May 2021, the average check was $ 1,430.73, according to the Social Security Administration, but that amount can differ dramatically depending on the type of recipient. In fact, retirees often earn more than the general average. As you can see, we strive to better guide you in making valuable decisions for your future.
Here’s what the average Social Security check is per recipient, how much your check could grow over time, and the maximum benefit.
While most people think of Social Security as a retiree-only program, it is known to serve many other groups as well, including the disabled, spouses and minor children of retirees, as well as spouses and children. minors of deceased workers. The amount each group receives differs substantially.
In fact, the average retired worker receives $ 1,553.68 each month, 9 percent more than Social Security recipients as a whole. Here’s how the figures are broken down by recipient, as of May 2021.
|Type of beneficiary||Percentage of total payments||Average monthly profit|
|All recipients||100%||$ 1,430.73|
|Retirement benefits||76.20%||$ 1,507.53|
|Retired workers||71.70%||$ 1,553.68|
|Survivor benefits||9.10%||$ 1,244.61|
|Non-disabled widows||5.50%||$ 1,460.55|
|Disability insurance||14.70%||$ 1,146.79|
|Disabled workers||12.50%||$ 1,280.17|
Source: Social Security Administration, as of May 2021
Those benefits may not be fully taxable either. Some Social Security beneficiaries can also legally avoid taxes on their benefit check.
You need to know that benefits increase with cost of living adjustments
While the Social Security benefit is a good part of the change, if it stayed the same for the next 30 years, your purchasing power would decline due to inflation. That’s why Social Security increases your benefit checks over time with a cost-of-living adjustment.
This increase is based on a version of the Consumer Price Index, which measures how much inflation has affected the prices consumers pay for goods and services.
According to calculations, the maximum monthly benefit for the current year 2021 by retirement age is:
- At age 62: $ 2,324
- At age 65: $ 2,841
- At age 66: $ 3,113
- At age 70: $ 3,895
These figures assume that a worker had stable income at the maximum taxable level since the age of 22. For 2021, the maximum taxable income is $ 142,800, a number that generally increases each year. Gentlemen users, below, we show you how to calculate your benefit check.
Your benefit depends on how much you have earned, up to a maximum each year. And taking advantage of its benefit later in life can also increase substantially.Workers can claim a benefit early, at age 62, if they have contributed 10 years of work, before reaching what is called full retirement age, which can range from 65 to 67, depending on when born.If you claim benefits early, your paycheck will be less than it could be in the event of full retirement or even later. If you wait until age 70 to claim benefits, you will receive even more each month. To receive these benefits, you pay Social Security taxes of 6.2 percent on your income, up to the maximum taxable income. Your employer pays another 6.2 percent of your salary into the fund, but if you are self-employed, you also pay that part of the tax bill.
If you have any questions related to finances, credits and other related topics, but do not know who to turn to, contact us by going to Hispanic Solutions Group, writing to email@example.com, by calling 612-216-1599 or accessing financial information on YouTube, The credit channel, Our specialists in charge of Mrs. Jessica Aliaga will be informing you of any concerns about this and other financial issues of general interest and guidance as in this topic, today we reach you the following report so that you can make your most important economic decisions , also him We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram