The first Social Security check was cashed in 1940, and the total was around $23. Last year, data showed that the average monthly cash for a Social Security benefit received by an eligible beneficiary amounts to $1,500. Nearly nine out of ten people aged 65 and older receive Social Security benefits, so it is necessary to talk about how much a person can get monthly based on the salary they earned during the years they worked.
The amount of Social Security benefits one can receive depends on many factors like the year they were born, the average income, and when the person starts to receive the benefits.
If you were 62 years old in 2020 and had an average lifetime salary of $30,000, Social Security will take your top 35 earning years, adjust them for inflation, and divide it by 420, which is the number of months in 34 years. The Averaged Indexed Monthly Earnings (AIME) will be $2,500, CNBC reported.
However, there are bend points to consider. On the first bend, you get 90 percent back from the first $960 dollars of your AIME. For the second bend, you get 32 percent back of your earnings between $960 and $5,785. You add these two, and you will get a monthly Social Security benefit of $1,357 if you wait until your full retirement age.
If you made $40,000 a year during the years you worked, your AIME is $3,333. Looking at the two bend points again, the monthly Social Security benefit will amount to $1,623. If you made $50,000 a year, your AIME is $4,167. Again, taking together the two bend points, you will get a $1,890 monthly Social Security benefit. If you made $60,000, your AIME is $5,000, and your monthly Social Security check will amount to $2,157.
Suppose your monthly salary was $75,000, your AIME increases to $6,250. Here, the third bend will be used, and your monthly total Social Security benefit is $2,478. For a $100,000 salary, the total monthly check you will get from Social Security increases to $2,790.
These numbers are just estimates of your benefits. If you want a more accurate one, you can go to ssa.gov.