Structure of Social Security Basic Components Typical low-earner who retired in 2003 received 64% Of AIME Average earner received 48% High earner received 40% 16
16 Structure of Social Security: Basic Components • Typical low-earner who retired in 2003 received 64% of AIME. • Average earner received 48% • High earner received 40%
Structure of Social Security Basic Components Age at which benefits are withdrawn The normal retirement age is the age at which an individual qualifies for full Social Security benefits Can retire as early as age 62, but benefits are scaled down Benefits are scaled up for retirement after the normal age 17
17 Structure of Social Security: Basic Components • Age at which benefits are withdrawn – The normal retirement age is the age at which an individual qualifies for full Social Security benefits. – Can retire as early as age 62, but benefits are scaled down. – Benefits are scaled up for retirement after the normal age