Only 30% of Retirees Pull Off This Impressive Social Security Feat. Here's How to Join Them.
I won't sugarcoat it: Social Security isn't going to save you if you don't set enough aside for retirement. The program was only intended to supplement people's own savings, and most people's earnings histories won't entitle them to anywhere near the $4,194 maximum monthly benefit.
In fact, only about 30% of beneficiaries get more than $2,000 per month. Below, we'll take a closer look at the reasons why, and what you would need to do to join them.
Calculating your average indexed monthly earnings (AIME) is the first step in determining your Social Security benefit. The government does this by taking your earnings figures from your 35 highest-earning years, adjusting them to account for inflation, adding those adjusted figures together, and then dividing the total by 420 -- the number of months in 35 years. If you didn't earn income during at least 35 years, then you'll have some zero-income years factored into your calculation, which will drag down your average.
Source Fool.com
