Benefit levels for Social Security are determined by a formula that reflects length of time worked and the amount of wages earned.

Question

Quizplus · Accepted Answer

The statement is true. Social Security benefit levels are based on a formula that takes into account a person's earnings over their lifetime, with higher earnings resulting in higher benefit amounts. The length of time worked also plays a role in the calculation, as benefits are calculated based on a person's average indexed monthly earnings (AIME) throughout their working career.

Benefit Levels for Social Security Are Determined by a Formula