Social Security favors lower income earners

The highest earners receive the lowest return for taxes paid thus are subsidizing the majority of workers.

Primary Insurance Amount (PIA) formula
For an individual who first becomes eligible for old-age insurance benefits or disability insurance benefits in 2025, or who dies in 2025 before becoming eligible for benefits, his/her PIA will be the sum of:


(a) 90 percent of the first $1,226 of his/her average indexed monthly earnings, ($14,712 annual) plus

(b) 32 percent of his/her average indexed monthly earnings over $1,226 and through $7,391, ($88,692 annual) plus

(c) 15 percent of his/her average indexed monthly earnings over $7,391 ($88,692 annual) **

** Up to FICA taxable wage

Zero percent monthly earnings above the taxable wage base

The estimated median US salary is $68,124 per year in 2025.

Source: SSA

One comment

  1. Are you just stating facts or is there a point? I think most of us know this. If the higher earning person did not have the benefit curtailed, the program would be in much worse shape. The average monthly benefit is 1976. The monthly benefit for top earner reaching FRA this year is 4018.

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