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Excess Retiree Benefits

Created on May 22, 2013

Excess Retiree Benefits

CHART 3

Maximum Wage Retiree

Average Retired Worker

Minimum  Wage Retiree

EXCESS RETIREE BENEFITS COMPARED TO CHAINED CPI

Under its current inflation adjustment rather than the more accurate chained CPI, Social Security will provide $3,549 in excess benefits to the average retiree over 10 years. Maximum  wage earners will receive $7,623 in excess benefits over 10 years.

Note: A maximum wage retiree is a worker who earned the Social Security taxable maximum income or higher in each of his or her working years. In 2011, the taxable maximum income was $106,800.

Source: Heritage Foundation calculations based on data from the Social Security Administration; U.S. Department of Labor, Bureau of Labor Statistics; and Congressional Budget Office forecasts.

B 2799

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