7. Monthly Social Security benefits
Monthly Benefits
The Social Security Administration has a computerized service that determines your benefits because Social Security benefits are based on a fairly complicated formula. In fact, the government is required to provide all covered workers with a Social Security Statement.
Identify the range of benefits you can expect.
- If you retire at age 62, benefits of 70 to 80 % of your full retirement benefits.
- If you retire at age 65 to 67, receipt of your full retirement benefits.
- If you delay retirement until age 70, you can receive an increase in your benefits.
Range of Benefits
Brian, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $2,323.25. Assume that the benefit is the same for this year and the next year.
Compute Brians annual benefit reduction amounts in each of the following scenarios.
- If Brian retires this year and secures a part-time job earning $17,000, his annual benefit reduction amount is $ (answer).
- If Brian retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is $ (answer).
- If Brian retires next year and secures the same part-time job, the annual benefit reduction amount is $ (answer).
Taxes on Benefits
Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayers base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero.
Suppose Edison is retiring this year at age 67. The following table shows his data.
| Part-time salary $26,000 | Annual savings account interest $250 |
| Annual dividends $2,250 | Annual interest on Dallas municipal bonds $1,150 |
Based on the income calculated, Edison will have (answer) % of his Social Security benefits taxed.
7. Monthly Social Security benefits Monthly Benefits The Social Security Administration has a computerized service that determines your benefits because Social Security benefits are based on a fairly complicated formula. In fact, the government is required to provide all covered workers with a Social Security Statement. Identify the range of benefits you can expect. If you retire at age 62, benefits of 70 to 80 % of your full retirement benefits If you retire at age 65 to 67, receipt of your full retirement benefits If you delay retirement until age 70, you can receive an increase in your benefits. Range of Benefits Brian, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $2,323.25. Assume that the benefit is the same for this year and the next year. Compute Brian's annual benefit reduction amounts in each of the following scenarios. If Brian retires this year and secures a part-time job earning $17,000, his annual benefit reduction amount is If Brian retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is $ If Brian retires next year and secures the same part-time job, the annual benefit reduction amount is $ Taxes on Benefits Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer's base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Edison is retiring this year at age 67. The following table shows his data. Part-time salary $26,000 Annual savings account interest $250 Annual dividends $2,250 Annual interest on Dallas municipal bonds $1,150 Based on the income calculated, Edison will have % of his Social Security benefits taxed. 7. Monthly Social Security benefits Monthly Benefits The Social Security Administration has a computerized service that determines your benefits because Social Security benefits are based on a fairly complicated formula. In fact, the government is required to provide all covered workers with a Social Security Statement. Identify the range of benefits you can expect. If you retire at age 62, benefits of 70 to 80 % of your full retirement benefits If you retire at age 65 to 67, receipt of your full retirement benefits If you delay retirement until age 70, you can receive an increase in your benefits. Range of Benefits Brian, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $2,323.25. Assume that the benefit is the same for this year and the next year. Compute Brian's annual benefit reduction amounts in each of the following scenarios. If Brian retires this year and secures a part-time job earning $17,000, his annual benefit reduction amount is If Brian retires this year, secures the same part-time job, and in addition projects interest and dividend earnings of $7,000 per year, what his annual benefit reduction amount is $ If Brian retires next year and secures the same part-time job, the annual benefit reduction amount is $ Taxes on Benefits Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer's base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Edison is retiring this year at age 67. The following table shows his data. Part-time salary $26,000 Annual savings account interest $250 Annual dividends $2,250 Annual interest on Dallas municipal bonds $1,150 Based on the income calculated, Edison will have % of his Social Security benefits taxed
