Everything You Need to Know About Social Security
What is Social Security?
Social Security is a government benefit, dedicated to retirees, families of disabled or deceased workers, and people with disabilities.
Everytime you get a paycheck, a small portion of it goes to something called FICA, which stands for Federal Insurance Contributions Act tax. This is what funds Social Security. Your money goes to current Social Security recipients, like for instance, your grandparents.
The SS pot is made up of two primary funds: Old-Age and Survivors Insurance (OASI) and the Disability Insurance (DI) fund. If there is more money coming into the pot than going out, the pot collects interest and the government is allowed to use the surplus to make investments.
When Do I Get Social Security?
As you age, you might start to consider applying for Social Security benefits for your retirement. However, it is best not to rely on these benefits. Hopefully, you have a personal retirement account in place. But, it is a great supplementary form of retirement income — 64% of aged beneficiaries received at least half of their income from Social Security in 2013.
Indeed, the program is widely used. About 64.2 million people received benefits from programs administered by the Social Security Administration (SSA) in 2014, and 5.4 million people were newly awarded Social Security benefits in 2014.
Your eligibility for these programs depends on a couple of different factors. You can start receiving benefits by 62, but “full retirement age” is actually 65. If you retire before then, your benefits could be reduced by up to 25% for the rest of your life. In the same way, if you retire after your full retirement age, you could get 8% more until age 70.
There are flaws in the system, however, so if you feel in any way that you aren’t getting the full benefits, you should contact experienced social security attorneys or social security disability lawyers in order to get your fill social security disability benefits.
Your attorneys will be able to guide you through the process of reapplying for or petitioning for a recognized and enacted change in your social security paperwork.