Social Security’s progressive benefits formula favors low-income workers; they tend to get back a greater percentage of what they put in compared to higher-income workers. But for many retirees today, the amount they’ve paid in over the years will likely exceed what they’ll take out, according to an analysis by The Associated Press.
This has also changed drastically with the times. According to The Associated Press, those who retired in 1960 could expect to receive seven times more in benefits than they paid in taxes. Last year, data showed a retired married couple who paid $598,000 in Social Security taxes throughout their careers could expect to collect only $556,000 in benefits – and that’s if the man lives to 82 and the woman to 85, according to an Urban Institute study.
(iStock) More from Money Talks News
: 5 Things to Consider For a Less Taxing Retirement How to Replace Lost, Stolen, or Destroyed Personal Paperwork Ask Stacy: Is It Too Late for a Happy Retirement? The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.