How Much Social Security Will I Get At Age 62?

Social Security

I have spent most of my career researching what is happening to work for families in America. One thing is clear: Saving for a decent retirement is getting even harder.

Decades of stagnant wages and rising costs for basic needs like housing, health insurance, education, and child care are straining family budgets. Millions of families have had to sacrifice saving for retirement just to make ends meet. Fewer people have access to the type of pension that previously ensured a comfortable retirement.

As a result, the Social Security program has become the primary source of retirement income for seniors. For about half of married seniors and 70% of single seniors, at least half of their income comes from Social Security. More than 20% of married seniors and 45% of single seniors rely on Social Security for more than 90% of their income. These statistics are even starker for seniors of color: As of 2014, 26% of Asian/Pacific Islander beneficiaries, 33% of African American beneficiaries, and 40% of Latino beneficiaries rely on the benefits they receive. from Social Security as your only source of income for your retirement.

Today, Social Security benefits are small. Social Security is an earned benefit: Throughout your career, you contribute a portion of your salary to the program, and then you and your family will receive Social Security benefits once you retire or if you have to stop working for a handicapped Decades of stagnant wages have caused these benefits to be even lower in retirement. In 2019, the average Social Security beneficiary received $1,354 a month, or $16,248 a year. For someone who worked her entire working life at average wages and retired this year at age 66, Social Security will only pay 41% of what she used to earn. This is less than 70%that many financial advisers recommend for a decent retirement that allows them to continue living in their homes, go to the doctor when they’re sick, and get the prescription drugs they need.

Here’s the even scarier part: Unless we act now, future retirees will be worse off.

Despite these statistics, Congress has not increased Social Security benefits in nearly fifty years. When politicians in Washington discuss the Social Security program, they only discuss how much they are going to reduce benefits. After signing a law that gave a $1.5 trillion cut to billionaire corporations, Donald Trump twice proposed cutting billions from the Social Security program.

We need to reevaluate our priorities. We should increase Social Security benefits and ask the wealthiest Americans to contribute their fair share to Social Security. For years I helped lead the fight in Congress to expand the Social Security program. And today I’m announcing a plan that will provide the biggest increase in Social Security benefits in nearly half a century. My plan:

  • Increases Social Security benefits immediately by $200 per month or $2,400 per year for each current and future Social Security beneficiary in the United States.
  • Updates rules to further increase benefits for low-income families, women, people with disabilities, public sector workers, and people of color.
  • Fund these changes and extend the solvency of the Social Security program by nearly two decades by asking the wealthiest 2% of families to contribute a fairer share to the Social Security program.

An independent analysis by Mark Zandi, chief economist at Moody’s Analytics, concluded that my plan will achieve all of this and also:

  • It will be able to lift an estimated 4.9 million seniors out of poverty immediately, reducing the poverty rate by 68%. 
  • Create a “much more progressive Social Security system” by raising contribution requirements only for very high-income earners and raising average benefits by nearly 25% for those in the bottom half of the income distribution, compared to less than 5% for people in the top tenth of the distribution.
  • It will stimulate long-term economic growth and reduce the deficit by more than a billion dollars within the next 10 years.

Every current Social Security beneficiary, approximately 64 million Americans, will immediately receive at least $200 more per month under my plan. This would be an additional $2,400 a year to help with the costs of keeping up a home, necessary travel, or outstanding debt. And every future Social Security beneficiary will also get this extra $200 a month: that includes people in their 60s who are nearing retirement or people in their 20s who are just starting their careers. If you want to learn more about how my plan will impact you, find my new calculator here

By aamritri

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