How Does the Government Compute Your Social Security Benefits

Multiple Choice

How does the government compute your Social Security benefits?

A) Your income from stock dividends and interest from bonds is deducted from the agreed amount.
B) The cost of living in a community is calculated, and you are provided 70% of that amount.
C) As a woman, you are allocated less money because women live longer and will receive benefits longer.
D) Your allocation is based on your medical history and on insurance reports of life expectancy.
E) Your benefits are based on your earnings over the course of your (or your spouse's) work life and other factors, such as age when you decide to draw Social Security.