Amount Of Social Security Benefits

With the exception of Medicare benefits, the size of the benefits the worker and his family receive depends upon the worker’s average monthly wage. It is important to note, however, that there is a maximum average monthly wage that is taxable for social security benefits. Once the monthly wage is determined, it is converted through the use of tables to the “primary insurance amount.” This amount is the basis for the size of benefits paid under retirement, survivors’, and disability coverages. In short, all benefits either equal the primary amount or are some multiple or percentage. For example, the widow of a deceased worker may receive a benefit equal to 82.5 percent of the worker’s primary amount while a dependent child may receive 75 percent. (consult with a social security professional for exact amounts.) The size of the benefit received by the individual is determined to some extent by the maximum and minimum benefit amounts. For example, in 2010, an individual at age 65 who was otherwise eligible for retirement benefits was entitled to a maximum of $2,346 per month. These minimum and maximum figures change yearly, however, as Congress adjusts benefit levels.