As everyone knows that Social Security is the most efficacious program in the United States of America, but do you know everything about it? Social Security benefits can place a major impact on your retirement, specifically if your savings are not as strong as you had expected they would be at the time when you retire. It implies that being a US citizen, if you want to maximize its benefits, then you should apprehend everything about it like its facts, working, methods to boost benefits, and much more.
In this post, you are
going to learn about the jaw-dropping figures that will be going to highlight
some facts about this essential retirement program, which helps you to make
your golden years wonderful with as much knowledge as possible. So, check out
these facts:
Approximately 21% of married couples depend on
their benefits for a minimum of 90% of their retirement income
It has found that the
number is even greater for those beneficiaries who are unmarried, with nearly
half of those retirees relying on their monthly paychecks for 90 percent or
more of their income. It is due to the fact that the benefits of Social
Security are only made to replace around 40 percent of the pre-retirement
income. Hence, if you are going towards your retirement years anticipating that
money to cover most of the expenses, you may be going to get a surprise.
This is the main
reason why it is more vital to make sure that you have some other sources of
income for your retirement period. If you think that Social Security will be an
adequate option to meet your retirement expenses, then you are mistaken here. If
you can, you can make sure to save some cash in your retirement fund so that
your Social Security benefits would not need to work alone for your retirement.
More than 68% of workers are unaware of their
full retirement age
The most important
thing to know is the full-retirement age as it impacts how much you will get
each month for the remaining life. If you prepare yourself to claim Social
Security benefits at the FRA that is either at age 66 or 67, based on the year
you were born, then you will be going to get the full benefit amount you are
qualified for. Of course, these benefits can be claimed after or before that
age, but make sure you know that it will impact the size of checks you will
get. If you want those benefits to be claimed at an early age, then you will
get reduced benefits. And if you make your mind to wait until after the FRA to
claim such benefits, then it would be good for you as you can receive a bonus
every month along with your full amount.
The actual reality is
that a massive 68% of workers with the age of 50 years or older are not
familiar with their full retirement age based on the survey. Sixty-two percent
of people think that their full retirement age is earlier than it actually is. It
states that many workers might start claiming Social Security benefits early;
they think that they can get their full benefit amount. But in a real scenario,
they get their benefits in a reduced amount. However, when you are aware of
your FRA with a complete understanding of how these benefits will work, then your
benefits will be impacted according to the age you claim. This way, you will
make the best decision according to your circumstances.
Around 57 percent of workers have not examined their
assessed future benefit amount
There is no need to
wait until you start claiming to figure out what your future Social Security
benefits may appear like. You should check your Social Security statements as
it takes only a few minutes. You can keep a record of what you are going to
receive, no matter whenever you claim. Based on the SSA, 57 percent of workers who
have signed up with the SSA’s official website and made their accounts have not
logged in yet to check their statements. It shows that you are staying away
from actual Social Security benefits to a great extent.
Checking the
statements by going to the official website of the SSA and logging in to your
online account is of greater importance. It will help you to make yourself
prepared for your retirement age, as you can create a budget and examine how
much you can spend when you are not familiar with the checks received from
Social Security. When you have got an estimation of what you receive each
month, then you will be able to develop a more thorough retirement plan. This
way, you can also save for your retirement so that you can fulfill the
necessity of your expenses in the retirement age.
Approximately 78% of workers are concerned that
Social Security will go penniless
It is the biggest
concern that people have. They think that Social Security will run out of
money. However, the SSA is dealing with its fair share of issues, but it is not
on the edge of collapse. The reality is that Social Security is experiencing
cash unavailability. With baby boomers retiring in crowds and retirees living
for longer, the SSA is giving more Social Security benefits than it is getting
from workers as taxes. To eliminate this gap, Social Security appointed its
trust funds, which are anticipated to run dry by 2035. If this will be the
case, then only around 75% of expected Social Security benefits will be paid to
people. It states; the program itself is not dropping down. As long as workers
fulfill their commitment to pay taxes, Social Security will always have at
least some money to pay out in benefits. It concludes that it is not as bad as
most people may think.
These are some facts related to Social Security, which will help you in avoiding getting mistaken or fooled.
