An individual paying twice as much in Social Security taxes over her lifetime as another individual would receive at least twice as much in Social Security benefits.

Question

Quizplus · Accepted Answer

The formula used to calculate Social Security benefits is based on a complex system that takes into account factors such as an individual's lifetime earnings and the number of years worked. While the amount of Social Security taxes paid does impact the size of one's eventual benefits, it is not an exact one-to-one ratio. Therefore, it is possible for someone who paid more into the system to receive the same or even less than someone who paid less into the system, depending on factors such as their earnings history and retirement age.

An Individual Paying Twice as Much in Social Security Taxes