Each individual has the basic
right to lead a life full of respect, dignity and contentment. This is the
basic human goal of any individual’s life. Having a sense of belief and
certainty that you will be able to cater to your basic needs in life is what
drives you to work every day. However, sometimes life throws at us the most
unexpected challenges and it becomes difficult to continue leading a
stress-free life on your own. Medical ailments, meeting accidents, deaths etc
are some things that are not under the control of us humans and we need to
prepare for these challenges from before so that we do not have to face
consequences in the long run. This is where the Social Security Scheme of the US Government comes into the
picture.
What is Social Security?
Social Security is nothing but an
insurance policy of the US Government that helps assist all retired and
disabled people and their loved ones after they fail to help themselves
out. Social Security refers to insurance where people receive benefits
in accordance with the contribution that they have made to a particular plan.
The main areas where Social Security plan comes to play a role are:
- Retirement pensions
- Disabled Persons
- Unemployment benefits
- Survivor benefits
- Health and safety at work
- Medical care
- Food, clothing and housing
How does Social Security work?
The Social Security is implemented by the SSA or the Social Security
Administration. The SSA assigns Social Security numbers and takes care of
social security retirement, survivors and disability pension schemes. It also
administers the SSI or the Supplemental Security Income programme for the
blind, poor and aged. The SSA is an independent agency of the US federal
government. To be avail benefits from the SSA most people pay Social Security
taxes as part of their earnings. The SSI benefits, however, are given based on
the needs of the people. The SSA was created during the tenure of President
Roosevelt's tenure when he signed the Social security Act in 1935. The
programme is dependent on the contributions made by the employees while they
are in service and the benefits are enjoyed later on, which is when they retire
from their jobs. Payroll taxes gathered from the individuals and the companies
fund this programme.
The Social Security benefits vary from person to person based on their
lifetime earnings, marital status, retirement age and the retirement income.
The SSA levies 12.4% tax on your earnings to fund the scheme.
When to claim your SSA benefits?
Well, there is a right time for
everything and the same applies to avail benefits from the SSA. The longer you
wait to claim your benefits the greater would be the reward. You can claim retirement
benefits only when you have crossed 62 years of age. When you wait till your
full retirement age which is fixed by the SSA and 67 in case you were born in
and after 1967 then you will be entitled to receive your primary benefit
amount. The sooner you claim your benefits the lesser your monthly payment will
be. If you claim benefits at 63 you will get just 70% of the Primary benefit
and at 65, 86.7% of the amount. So it's better to wait till 67 if that is your
retirement age determined by the SSA.
Benefits under the Social Security Scheme
Social Security Child’s Insurance Benefits
These benefits are federally
funded. The SSA administers these benefits for children whose parents have
worked and earned enough Social Security
scores and are entitled Ssa retirement and disability benefits. To qualify for
this scheme the child must be unmarried, less than 18 years of age and
completely dependent on his or her parents.
Social Security Disability Insurance Benefits
These benefits are paid to you
and to your family in case you have worked long enough and are now suffering
from a medical ailment that has prevented you from working or do so in the next
12 months at least or may even prove to be fatal. You must adhere to the SSA's
definition of disability to claim benefits under this scheme.
Social Security Disabled Surviving Divorced Spouses Benefits
These benefits are served to the
disabled surviving divorced spouse of an individual who had worked enough to
gain required Social Security
credits. To qualify for this scheme your age must lie between 50 to 60 and you
must be marred for at least 10 years prior to your divorce. You must also not
be entitled to some other Social Security benefit based on your own work
elsewhere.
Social Security Disabled widow(er) Insurance Benefits
These benefits are paid to the
disabled widow or widower of the deceased who has worked enough to earn Social Security credits. Your age must
be between 50 and 60 years to claim benefits and should be married for at least
9 months before the death of your spouse. Also, you must not be eligible for
benefits from some other scheme owing to your own work.
Social Security Medicare Program
It is a federally funded program
looked after by the CMS (Center for Medicare and Medicated Services) which is
the health insurance program of the US. To be eligible for this scheme you must
be 65 years and older and must be getting disability benefits from the SSA.
When you sign in for Medicare benefits you can choose between part A and part b
which are hospital insurance and medical insurance respectively.
Social Security Retirement Benefits
The retirement benefits vary
according to the retirement age fixed by the SSA which could either be 62 or 67
but the basic criteria of having earned specific Social Security credit holds for both. There are incentives for you
if you wait till your full retirement age to claim the insurance benefits.
Social Security benefits for World War II veterans
The veterans who served in the US
Army from September 16, 1940, to July 24, 1947. You must be eligible for the
SSI as of December 1999 and in the month in which you apply for the benefit
scheme.
Summary
The Social Security scheme is a monetary insurance plan that helps you
lead a dignified life today and always.
