Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills?

Question

Mathematics

Dixie Hoover

14 July, 04:03

Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills?

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Corinne Fuentes · Answer 1

Annual Social Security benefit = 0.42 x $37,991 = $15,956.22

Annual bills = $1,755 x 12 = $21,060

Outstanding annual bill to be settled after using the Social Security benefit = $21,060 - $15,956.22 = $5,103.78

Monthly supplementary money needed = $5,103.78/12 = $425.32