from24/7 Wall St.
4 days agoCongress Could Raise Social Security's $184,500 Tax Cap Without Cutting Benefits
The Benefit Formula That Determines Your Monthly Check Social Security doesn't simply pay everyone the same amount in retirement. Instead, the program uses your 35 highest-earning years to calculate an average, then applies a progressive formula through "bend points"-income thresholds where the replacement rate changes. This progressive structure means lower earners receive proportionally more generous benefits relative to their contributions, creating a safety net that provides stronger support where it's needed most while still rewarding higher lifetime earnings.
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