>> Aren't there diminishing returns with Social Security ? so at some cutoff you are NOT getting more regardless of how much more you work
Yes, Social Security is highly progressive. As I understand it, it takes your average monthly income over your 35 highest paying years, indexed for inflation, and pays you (2024 numbers) 90% of your monthly income up to $1,174, 32% of your monthly income from $1,175 to $7,078, and 15% of your monthly income above $7,078. There's also a cap on the Social Security tax and so a cap on the monthly income that is considered.
People refer to those as "bend points" in Social Security benefits, and there is a greatly reduced incentive to continue contributing to Social Security after reaching the second bend point. Someone who is 49 today likely started working as a teenager and would have close to 35 years of income credits (and so only a few "zero" years in the calculations). If they spent much time in a high paying job they would be close to or past the second bend point.
Yes, Social Security is highly progressive. As I understand it, it takes your average monthly income over your 35 highest paying years, indexed for inflation, and pays you (2024 numbers) 90% of your monthly income up to $1,174, 32% of your monthly income from $1,175 to $7,078, and 15% of your monthly income above $7,078. There's also a cap on the Social Security tax and so a cap on the monthly income that is considered.
People refer to those as "bend points" in Social Security benefits, and there is a greatly reduced incentive to continue contributing to Social Security after reaching the second bend point. Someone who is 49 today likely started working as a teenager and would have close to 35 years of income credits (and so only a few "zero" years in the calculations). If they spent much time in a high paying job they would be close to or past the second bend point.
See https://www.fool.com/retirement/social-security/bend-points/, although it has 2023 numbers for the bend points.
Also, sounds like the person in question was married for over 10 years, so there could be spousal benefits depending on the situation.