Social Security replaces more income for low-wage workers than for highly paid workers
Social Security benefits are calculated using a formula that takes into account your average earnings during your lifetime, but the higher your income is, the less of your pre-retirement income gets replaced. The first tier of your income – $926 in 2019 – results in $0.90 in benefits for every $1 of income.
But above that level, each additional dollar gives you just $0.32 in extra benefits, and above a second tier ($5,583 in 2019), it drops further to just $0.15.
