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HOW TO CALCULATE BENEFITS UNDER FEDERAL OLD-AGE AND SURVIVORS INSURANCE.

Benefit payments under the old age and survivors insurance provisions of the Social Security Act are calculated by rules given in the law itself. These rules are explained in this pamphlet. A general description of the whole system, explaining how the worker qualifies for benefits, is given in another pamphlet entitled "Old-Age and Survivors Insurance for Workers and Their Families" (Informational Service Circular No. 35). Both pamphlets are free at any office of the Social Security Board. This same office can give you further information in any particular case. 

The exact amount of any benefit payment is finally calculated by the Social Security Board when the claim is filed. In order to be able to make this calculation, the Board keeps a record of each worker's wages. This is known as his social security account. When he retires or dies, all of the wages credited to this account will be added up, and not until then will it be possible to find out exactly what his benefit payment comes to. 

By the rules given in the law, however, you can figure out for yourself about how much your monthly benefits might be, at whatever you think your average pay might come to by the time you are 65 and retire. You can also tell about what might be the benefit payment to any member of your family.
 
Because monthly benefits are based on average wages, there are two steps in this calculation:
1) Figuring average monthly pay;
2) Figuring the percentage of this average which gives the amount of monthly benefit payment. 

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