Ben and Luke are twin brothers age 70.Both are retired and they earned roughly the same income all their working years.Ben put 12 percent of his salary into a retirement plan while employed.Luke did not.Which of the following is true about their situation today.

Question

Quizplus · Accepted Answer

Social Security benefits are calculated based on your highest 35 years of earnings, not on how much you save or invest. Therefore, Ben and Luke, having earned roughly the same income, would collect about the same level of Social Security benefits. However, because Ben saved and invested a portion of his income, he likely has additional income from his retirement savings, making Social Security a smaller percentage of his total income compared to Luke, who did not save.

Ben and Luke Are Twin Brothers Age 70