3 ms·
The benefit is linear but the distribution of people getting it is not evenly distributed around the middle of the benefit range. Therefore the average benefit
by mbbutler 7y ago
The benefit is linear but the distribution of people getting it is not evenly distributed around the middle of the benefit range. Therefore the average benefit is not just the mean of the min and max SS benefits.
- Retric 7y agoThe existence of bend points in the formula means it’s non linear. https://www.ssa.gov/oact/cola/bendpoints.html https://www.ssa.gov/oact/cola/bendpoints.html PIA formula For an individual who first becomes eligible for old-age insurance benefits or disability insurance benefits in 2019, or who dies in 2019 before becoming eligible for benefits, his/her PIA will be the sum of: (a) 90 percent of the first $926 of his/her average indexed monthly earnings, plus (b) 32 percent of his/her average indexed monthly earnings over $926 and through $5,583, plus (c) 15 percent of his/her average indexed monthly earnings over $5,583. Note the c is capped 11,075 US$ per month as income above that is not taxed.
- mbbutler 7y agoOh, I'm sorry. I misread your first claim. I thought you said the benefit WAS linear.