10 Things to Ponder about Social Security
Social security has always been “in” in form or the other. It is a form of excuse that the government uses for securing your future. However, you should be aware about all the facts and technicalities associated with the process before you plan to opt for their packages. Most of the packages being offered are nothing more than disguises which have been designed to steal your money. Is your money really that useless that anyone can take it from you? You should always remember that your money might be the only thing that is your life partner but only if you use it in a controlled and strategic manner. This post is going to focus on the hidden and unknown sides of social security. Your job is to remember these things and also spread them forward to all those who are important in your life. Here are the 10 things to ponder about social security.
Image Source: ddservices.biz
For most of the individuals in American, the social security is a refuge at times of retirement. The board of trustees of the social security institutions reported that they will be able to clear out only 77 % of the varying benefits from 2033. You should be aware about the entire process in order to get the most number of benefits from it.
Your age at the time when you plan to collect the social security is indeed important. In fact, it influences the amount of benefits you are entitled to get. For all those born from 1943-1954, the exact age of retirement is 66. With the increase in the years of birth, the age of retirement also increases slightly. You are entitled to collect these benefits as soon as you turn 62, but it should be noted that 25 % of the benefits will be deducted. So always collect the benefits at the age of retirement.
8. Factoring Benefits
In order to be able to get social security benefits, you must have earned 40 credits. It has been reported that an individual can earn up to 4 credits on a yearly basis. You should also earn $ 4800 maximum in order to earn 4 credits for that specific year.
It should be noted that the government adjusts the benefits every year in accordance with the inflation. This form of adjustment associated with cost of living is indeed helpful in a number of ways. So always ensure that you get the adjusted amount at the time of retirement.
6. Spouse Benefits
Marriage does offer some extra benefits. It should be noted that only 1 of the individuals will be able to take these benefits. More specifically, it is 50 % of the benefits of the other spouse. However, these benefits will change if you prefer to claim the benefits before the age of retirement.
5. Survivor Benefit
If your spouse dies ahead of you, then you are entitled to ask for a survivor benefit. If you happen to be at your retirement age, you will be able to get a 100 % benefit of your spouse. Moreover, if you get remarried before the age of 60, you will not be able to gain the benefit of your deceased spouse.
Divorce does not mean that you will not be able to receive the benefits. The condition is that after the divorce, you should have been married for more than 10 years and that you should be 62 or older. You will be able to 50 % of the benefit with the fulfillment of this condition.
You can also chose to delay the benefits when you reach the retirement age. There are some benefits associated with this preference. For example, if you reach the age of 70, you will be able to witness a 7 % increase in your benefits.
The spouse can earn a lot of money if the other one chooses to delay his or her benefit. The condition is that the other one should be at the age of retirement and has applied for the benefits. However, he or she will be required to suspend the benefits so that the other one will be able to earn higher or more than his or her benefits.
You should be aware of the fact that you are required to pay taxes from your benefits. The higher your combined income is, the higher will be the taxes you will be required to pay.