Focus on the latest life updates for U.S. immigrants. After settling in the United States, how do new immigrants calculate their retirement benefits and retirement age? In this issue of the "U.S. Immigrant Life" column, Visas Consulting Group will provide a detailed analysis of the specific calculation methods for U.S. retirement benefits:
U.S. Retirement Policy
Early Retirement: You can start receiving retirement benefits as early as age 62, but the amount will be reduced by 30%. For every month you delay receiving benefits, the reduction decreases.
Normal Retirement: The U.S. Social Security Administration has set different full retirement ages based on birth dates. For example, for those born in 1937 or earlier, the retirement age is 65; for those born between 1943 and 1954, the retirement age is 66; and for those born in 1960 or later, the retirement age is 67. Individuals who retire at their full retirement age are eligible to receive full retirement benefits.
Delayed Retirement: Those who choose to delay retirement can receive additional incentive earnings (Delayed Retirement Credits) on top of their original retirement benefits.
What You Should Know About U.S. Retirement Benefits
The retirement benefits for the general public in the U.S. are Social Security Retirement Benefits. You must pay Social Security taxes while working; individuals pay 6.20% of their income, and employers pay the same percentage. If you are self-employed, you must pay 12.40%.
Specific Calculation of Retirement Benefits
Step 1: Take the sum of your annual income for the highest 35 years. If you have worked for fewer than 35 years, use the income from all years worked.
Step 2: Divide the total income by 35, and then divide by 12 to obtain the average monthly income.
Step 3: Calculate the retirement benefits at the full retirement age (using 2012 as an example): 90% of the first $767 is counted, 32% of the amount between $767 and $4,624 is counted, and 15% of the amount thereafter is counted. For example, if someone has an average monthly income of $4,762, their retirement benefit would be: 767 × 0.9 + (4,624 - 767) × 0.32 + (4,762 - 4,624) × 0.15 = 1,945.
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