Quote:
Originally Posted by CJ7
what income bracket would you call middle class?
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Latest index
The national average wage index for 2010 is 41,673.83. The index is 2.36 percent higher than the index for 2009.
Indexed earnings used to compute initial benefits
When we compute a person's retirement benefit, we use the national average wage indexing series to index that person's earnings. Such indexation ensures that a worker's future benefits reflect the general rise in the standard of living that occurred during his or her working lifetime.
When indexing an individual's earnings for benefit computation purposes, we must first determine the year of first eligibility for benefits. For retirement, eligibility is at age 62. If a person reaches age 62 in 2012, for example, then 2012 is the person's year of eligibility. We always index an individual's earnings to the average wage level two years prior to the year of first eligibility. Thus, for a person retiring at age 62 in 2012, we would index the person's earnings to the average wage index for 2010, or 41,673.83. We would multiply earnings in a year before 2010 by the ratio of 41,673.83 to the average wage index for that year; we would take earnings in 2010 or later at face value. (See two examples of indexed earnings.)
Indexed program amounts
We use the average wage indexing series to update several amounts that are important to the operation of Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program.
OASDI contribution and benefit base (also known as the taxable maximum)
Retirement earnings test exempt amounts
Formulas for a primary insurance amount and maximum family benefits
Amount of earnings needed to earn a quarter of coverage ("credit")
"Old-law" contribution and benefit base (as determined under the law as in effect before the 1977 amendments)
Coverage thresholds for both domestic employees and election workers
Substantial gainful activity amounts for disabled beneficiaries and earnings that trigger a trial work period
In addition, the Pension Benefit Guaranty Corporation uses the national average wage index to compute flat-rate premiums for PBGC-insured single-employer and multiemployer plans, as required by the Deficit Reduction Act of 2005.
Determination of the National Average Wage Index for 2010
To determine the national average wage index for calendar year 2010, we multiplied the 2009 national average wage index of 40,711.61 by the percentage change in average wages from 2009 to 2010, as measured by annual wage data we tabulated. The wage data are based on wages subject to Federal income taxes and contributions to deferred compensation plans.
The average amounts of wages calculated directly from our data were $39,036.67 and $39,959.30 for 2009 and 2010, respectively. To determine the national average wage index for 2010 at a level that is consistent with the national average wage indexing series for prior years, we multiply the 2009 national average wage index of 40,711.61 by the percentage change in average wages from 2009 to 2010 (based on our tabulated wage data). In other words, the national average wage index for 2010 is 40,711.61 times 39,959.30 divided by 39,036.67, which equals 41,673.83.
Click here to see the government chart:
http://www.ssa.gov/oact/cola/AWI.html
The average income nationally appears to be between 30,000 and 40,000.00 a year. (single wage earner)
define middle class ..
