If I Make $60,000, How Much Will Social Security Pay Me?
Social Security provides a huge portion of the retirement income that Americans rely on. Even if you're fortunate enough to earn $60,000 a year, which is slightly above the latest available median household income of about $54,000, you'll need Social Security to play its part in helping you make ends meet after you retire. By knowing exactly what to expect, you can make plans about how much you'll need to set aside on your own using special retirement accounts like 401(k) plans at work and IRAs. Running the numbers will give you a good starting point, telling you not only how much you paid into the system but also how much you might get out of it.
If you make $60,000 in annual salary, then you'll pay taxes into the Social Security system on all of your income. There's a wage base limit on Social Security taxes, but at $127,200, the amount for 2017 is well into the high-income category. With current taxes of 6.2% going to Social Security, you'll have $3,720 withheld from your paychecks over the course of the year. Another $3,720 will go into the system on your behalf, paid directly by your employer.
The upside of paying taxes on all of your compensation is that all of your earnings are included in calculating how much you'll get in your monthly Social Security checks when you retire. You'll get the maximum number of four work credits for the year, which will count toward the 40 credits you need to qualify for retirement benefits. Those credits will also apply toward Social Security disability benefits if something happens to you during your career.
Source: Fool.com
