How Does Social Security Payments Work
Social Security works by pooling mandatory contributions from workers into a large pot and then paying out benefits to those who are eligible for them. Social Security benefits are calculated based on your highest 35 years of work history with the highest 35 determined after each year of work has been indexed for inflation. Full Retirement Age For Getting Social Security The Motley Fool However there is a tax cap for high-income earners. How does social security payments work . However that does not preclude either person from collecting under the other. Full retirement age or older. Maybe you chose to receive reduced Social Security retirement benefits while continuing to work. If you take early retirement and you do not have a full 35 years of work history your Social Security benefits may be lower than if you continue to work for a longer time period. If your recent earnings make the top 35 it will increase the monthly average and your benefit payment. You can see this