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manyhats | 10 years ago

SS is scaled based upon the average income as computed over a person's working life. Since he's got lots of zeros in the calculation, and there's a cap on the SS wage computation ($37,800 in 1984) his SS-calculated income is lower over the entire period, and thus the benefit is heavily reduced.

It's not linear, but there's a hefty penalty to do it this way.

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