How are Pension and Retirement Date Calculated in US
The current retirement system is determined by relative laws which was passed by U.S. Congress in 1983. It effectively easing the lack of social security funds during some time in the 1970s. By 2010, the U.S. Social Security program has totally different situation since the 1983 reforms, which is expected to face a "social security bankruptcy" by 2033, so there is also a debate about whether to "raise the retirement age" Americans set different normal retirement ages, such as those born before 1937 and 1937, 65 years, those born between 1943 and 1954, 66 years, and those born after 1960 and 1960, 67 years. Persons who retire at the normal retirement age are entitled to a full pension.
If you retire early, you can get it as early as 62, but only 75 percent of the full amount, which will drop to 70 percent later. If retirement is delayed, the pension will rise. If your normal retirement age is 66 and you choose to retire at 67, you'll get 108% of your pension every month, and 132% a month if you choose to retire after 70 or 70.
Conditions for pension
The eligibility for a social security pension is mainly two, one is the accumulated social security pension points, the other is age. The accumulation of social security pension points comes from tax records.
In the U.S., every working taxpayer earns no less than $1,160 a month to get points, increase income, pay social security tax, and accumulate more points, accumulating up to 4 points a year to reach 40 points before receiving a full social security pension, otherwise there will be a discount. Those who have not accumulated any social security points can apply for a social security program called Supplemental Social Security, which is designed for those who do not have or are very low-income, as well as blind and disabled people without income, who have no age restrictions on receiving social security benefits.
How is the pension calculated?
The first step is to take the sum of annual income for a maximum of 35 years (adjusted for inflation, making 50,000 in 1980 is of course much more than the 50,000 earned in 2010, the Social Security Administration has an annual inflation factor, and finally the uniform conversion to present value) and if you do not work for 35 years, you will take all the income from the working year.
The second step divides total revenue by 35 and divides by 12 to arrive at an average monthly income.
The third step is to calculate pensions at normal retirement age (for example, in 2012): the first 767 converts 90 per cent, 32 per cent from the 767 to 4624 range, and then 15 per cent. For example, if a person earns an average of 4762 a month, his pension is: 767 x 0.9 plus (4624 - 767) x 0.32 plus (4762 - 4624) x 0.15 s 1945.
So look at how much Americans in various income segments are in the normal retirement age:
1) Base salary such as sales staff, restaurant attendants, etc., hourly wages of 8 to 10 yuan, if the average monthly income of 1400:
If you work for 10 years, your pension is 360.
If you work 20 years, your pension is 701.
Worked for more than 35 years and the pension is 892
2) General income such as clerks, monthly salary of 2000 to 3000, if the average monthly income 2500:
If you work 10 years, your pension is 643.
If you work 20 years, your pension is 902.
Worked for more than 35 years and the pension is 1245
3) Full-time median income such as primary school teachers, journalists, etc., annual salary of 40,000 to 50,000, if the average monthly income of 3500:
If you work for 10 years, your pension is 765.
If you work 20 years, your pension is 1084.
Worked for more than 35 years and the pension is 1565
4) High-paying jobs such as professional white-collar workers, annual salary of 60,000 to 100,000, if the average monthly income of 6000:
If you work 10 years, your pension is 993.
If you work 20 years, your pension is 1542.
Worked for more than 35 years and the pension is 2131
5) Top salary such as management, etc., more than 110,000 social security maximum, that is, average monthly income 9166:
If you work for 10 years, your pension is 1283.
If you work 20 years, the pension is 2017
Worked for more than 35 years and the pension is 2605
The upper limit for retirement benefits is 2605 per month, and the average Social Security payment for Americans today is 1,185 (which includes 1,188 per cent of all Social Security recipients, most of whom are retirees, and their average pension is 1298).
Two-track system in the United States
The U.S. also has a two-track system in which federal and local government employees generally do not participate in Social Security and have their own pension plan, typically 1 to 2 percent a year, based on their working life. Pensions are based on a maximum income of three or five years, multiplied by the cumulative value. If you've worked for 35 years, 70 percent, with an average maximum income of 6,000 months, then the pension is 4,200, much larger than social security. The total number of employees in the United States Government is more than 20 million, accounting for 15% of the labour force, and the high proportion of government employees, resulting in a huge gap in pensions, has been criticized by public opinion. In recent years, government pension spending has become increasingly large, and some departments, such as the post office, have abandoned their pension plans and joined the federal Social Security program.
401K Retirement Plan
In addition to Social Security, the U.S. has 401K or similar programs, which are based on self-funding, which are not taxed by the state for the time being (Social Security and Medicare tax are exempt), and companies that may also invest in it. You can take it out by the age of 60, but you'll have to pay income tax, but if you're old, you'll get less tax. Many small u.S. companies don't offer 401K at all, even though only 60 percent of companies that offer 401K plans pay their employees some money, and the usual company match is 3 percent of employees' wages. But Americans don't have much money to invest in 401K, typically 5 to 7 percent of their wages. Of the more than 156 million U.S. workers, only 51 million to 401K, the 401K program was worth $350 billion at the end of September 2012, equivalent to $60,000 per person (the average participant, if all jobs were counted, was about $22,000).
Statistics show that 36 percent of working and retired Americans have no more than a thousand dollars in all their savings and investments (including 401K), while 56 percent of Americans who are retiring have no more than 25,000 deposits and investments, so the vast majority of Americans retire on government pensions. A recent Gallup poll shows americans' biggest worry, 59 percent.
More and more people are delaying retirement in the United States. People choose to delay retirement for many reasons, some people are like to work, willing to play the heat, more people are in order to earn more money, so that they can live a more stable and prosperous old age. In 2013, 24 percent of U.S. men over the age of 65 were still working, and 15 percent of women over the age of 65 were still working, according to the U.S. Bureau of Labor Statistics.
At present, China has also introduced a program to delay retirement age, after the implementation. According to the plan, the calculation of deferred retirement will be implemented in 2022, and women under the age of 48 and men younger than 53 will catch up with the delayed retirement. Retired?
