A New Social Security Bill Aims to Protect Workers' Benefits
The amount of money you earn in your lifetime is used to calculate your Social Security benefits. Specifically, the Social Security Administration (SSA) takes your average monthly wage, indexed for inflation, from your 35 highest-paid years of income and applies a formula to it that determines what your monthly retirement benefit looks like.
But when the SSA receives incorrect wage information, it could result in lower benefits for workers impacted by such errors. That's why it's important for workers to check their earnings statements every year. These statements, issued by the SSA, summarize taxable wages for Social Security purposes on an annual basis, and also provide an estimate of workers' future retirement benefits.
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Source Fool.com
