Are SS benefits tied to inflation because if not we should just let the benefits not increase so in 40 years people are still getting 400 dollars but that wouldn't buy them a dinner at Outback.
They are...
Retirement benefits are calculated using a worker’s highest 35 years earnings. If the worker has an earnings record of more than 35 years, years with the lowest earnings are dropped. Only those earnings that the worker paid Social Security taxes on are counted. Thus, if the worker earned $100,000 in 2001, that year’s income would be counted as $80,400 for determining benefits, since the worker only paid Social Security taxes on that lower amount.
Earnings for previous years are indexed so that all years are measured by the same ability to purchase goods and services. This indexing increases past earnings to account for both inflation and increases in average wage growth. (See below for how past earnings are indexed.) For instance, if it would take $11.48 in 2002 dollars to equal $1.00 earned in 1951, and $1.53 to equal $1.00 earned in 1990.
Once all 35 years’ earnings records are indexed to the same standard, they are added together and divided by 420 (the number of months in 35 years). The result is the Average Indexed Monthly Earnings (AIME), and is used to calculate Social Security benefits. --
Determining Average Indexed Monthly Earnings (AIME)"so in 40 years people are still getting 400 dollars"
$400?
You must not have checked recently.
Seems like the average monthly checks are usually $1,000 - $2,000.
Anyone here on SS who can correct me?