SOCIAL SECURITY IN FOCUSWritten by Jinky C. Mesias
Just what is Social Security? Social Security is an agency directed to provide benefits that would act as a safety net for all citizens covered by it. Social Security is not only concerned with retirement benefits for its members alone but also covers those who are disabled, dependent for support upon members of Social Security, widow and widower, a child of a member or a beneficiary of a member who died but who is entitled to receive a benefit. However, benefits to be given depend on whether you satisfy all requirements set by Social Security.
The Social Security operates in this manner: would-be members are required to work and to pay their Social Security contributions. And when they retire Social Security provide them with their retirement benefits. Likewise, in cases wherein members became disabled they are also entitled to receive disability benefits. Not only that, their spouse and their children are also to receive monthly benefits.
All of you must be wondering just how much you are to pay in order to receive all aforementioned benefits. There is a standard set by Social Security for which members are to follow. For members who are employed, 6.2% of your wages is with held; your employer is also to share 6.2% matching contributions. Your employer is tasked of depositing withholding for your social security benefits. And also there is an additional 1.45% withheld from your wages and also a 1.45% matching contribution from your employer. The additional deductions from your wages are intended to cover your Medicare Benefits. The total deduction of Social Security from your wages is 7.65%.
AN OVERVIEW OF BENEFITS (Part I)Written by Jinky C. Mesias
SOCIAL SECURITY BENEFITS
Social Security members who were born before year 1938 are qualified to full social security retirement benefits which will be given when they reach age of 65. However, for those who just applied for their Social Security in year 2003, required age for full retirement benefits will increase to 67. The increase to be implemented is gradual just take for example those members born in 1940 they may be able to get their full retirement benefits when they attained age of 65 and 6 months. For those members born in 1950 they can get their full retirement benefits at age of 66 and for those born in 1960 onwards, their full retirement benefits will be given to them at age of 67.
Social Security also offers early retirement benefits however at a reduced retirement amount. The early retirement is available at age 62 of members. The disadvantage of taking an early retirement benefit is that monthly benefit is permanently reduced. On contrary, members who take early retirement option will be able to receive their benefits for a much longer period of time.
For those who tend to work beyond full retirement option, extra income they earn during those extra working years will increase their average income and will likewise increase their monthly retirement benefits. And another advantage for not applying for early retirement is that there are no earning limit for people ages 65 or older.