Social security is one of the major financial programs and
the majority of the people are not aware of the facts that are related to it.
Social security benefits are crucial to obtain especially for the people who
are completely new to it. This is why we have managed to group some of the
social security benefits facts that people must go through
President Franklin Roosevelt was the one who signed the SS
Act 83 years ago on Aug 14, 1935 and since then Social Security Act is one of
the most successful, popular and effective financial programs. There are billions of people who are taking
advantage of this program. If you too
want to get the best out of your SS Benefits, then review these facts first.
1. SS is more than a retirement plan
In the United States more
than one person is taking advantage of social security benefits. Older American citizens are the major
beneficiaries and others are receiving SSDI benefits or survivors of the
deceased workers. To gain social security benefits you have to contribute towards
the SS payroll after which they can earn SSDI, retirement benefits.
According to the Social Security actuaries, young workers
who are having average earnings with children and spouse are equivalent to life
insurance program with value $725,000 in the year 2018.
If a person is suffering from a severe disability 89% of the
people who are 21-64 years of age and has worked in the covered 2017 employment
is insured under social security.
2. SS delivers guaranteed profit
The amount of social security benefits depends upon your
earnings and payroll taxes. More you
earn more you enjoy SS benefits. These benefits are progressive and they
display a huge ratio of the employee’s earnings for the ones with the lowest
income. Once you start getting your SS benefits
they are going to take pace with the inflation, assisting people who are falling
in the category of poverty as they are aging.
On the other hand, most annuities and private pensions are not adjusted
for inflation.
3. SS is a foundation of protection for almost every American
The majority of the
workers are participating towards SS by contributing through taxes and almost
all the retirees in America are receiving social security benefits. In fact
today 97% aging 60-89 are currently receiving or are going to receive according
to the estimation of the SS administration.
Social security benefits are not only just for retirees, but
it is spread in several domains. People failing indifferent earning levels are
receiving benefits making it a financial foundation for the citizens. It boosts personal as well as private pensions
and does not deny benefits for those whose income is higher or at a certain
level. Social security is of universal
nature.
4. SS benefits are diffident
The majority of people
are not having any idea about the modesty of social security benefits. The
average amount in June 2018 was$1,413/month. Individual who has earned whole of
his life and gets retired at the age of 65 in 2018, then SSB replace 39% of
their past earnings. This rate of replacement
is going to slip about 36% for the ones with medium earnings at the age of 65
in the future because of the reason that they have reached full retirement
age.
5. Even children are important in social security
Social security administration does not neglect anybody, not
even children, families and elders.
About six million children who are underage are part of the families who
are already receiving Social security benefits. This number is approximately
three million children who are receiving disabled, retired dependents, deceased
workers and others who are staying t with their parents/relatives receiving SS
benefits. This financial help program
has already lifted 1.7 million children out of the poor living condition since
the year 2015.
6. Social security has lifted millions of Americans
In America, there are
4/10 people who are above 60 and older suffering from poverty or low
income. According to the updated
population survey, there are more than fifteen million elderly people who are
out of poverty and living a standard life. Elderly Americans must have
definitely lead poor life in the lack of social security benefits aid they are
receiving right now. It has already lifted millions of Americans approximate
data is 10 million out of poverty. This might be a complex thing to understand,
but the conclusion is SS has dramatically reduced the rate of poverty in
America.
7. The majority rely on SS benefits
There is no surprise
in this fact as we have already discussed the elderly poverty rate in America
in the above section. The majority of
the elderly in America are receiving social security benefits. Elderly are getting 50% of the financial help
from the SS benefits and 1/5 are receiving SSB with 90% of their income according
to the different surveys and updated researches and study.
8. Social security is important for citizens
Every country has different policies, programs and a number
of things to help their citizens lead a standard life. The social security
program is one great example of it. Social
security is the major source of income in America for people of different
domains. People who have low income can
save for their future, people who like to prepare for the future and knows life
does not come with a guarantee card, who wish to have solid retirement plans
find social security benefits program ideal for their needs. This means social
security is for the people of all color.
These are the 8 facts
about the social security benefits program which are of great importance for
all those who have second thoughts or doubts about social security
benefits. You can also calculate your
benefits using online calculators to know how you have to or are preparing for your
future. You must become a part of it if
you are not because it is the matter of your future, your children and your
loved ones.
