Your retirement benefit how is it figured

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Please enable Javascript in your browser and try again. Now Reading:. Membership My Account. The maximum Social Security benefit changes each year. Many people whose health allows them to continue working in their 60s and beyond find that staying in the workforce keeps them young and gives them a sense of purpose. It gets credited back to you - with interest - in the form of higher future benefits.

The amount of your benefits that is subject to taxes is calculated on a sliding scale based on your income. Money that Social Security recipients pay in income taxes on their benefits goes back into funding Social Security and Medicare. If your retirement income is high enough that your benefits are taxable, how do you pay those benefits? That covers federal income taxes. What about state income taxes? That depends.

In 13 states , your Social Security benefits will be taxed as income, either in whole or in part; the remaining states do not tax Social Security income. Our advice? Aim high and save as much as you can. Baby steps. What is an Index Fund?

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Frequently Asked Questions Retirement Search by keywords:. Advanced Search. How are my Social Security retirement benefits calculated?