10 Facts About Social Security, Social security is one of the major financial programs and the majority of people are not aware of the facts that are related to it. Social security benefits are crucial to obtain especially for 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.
10 Facts About Social Security
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, and 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 a 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.
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SS delivers guaranteed profit
The amount of social security benefits depends upon your earnings and payroll taxes. The 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.
SS is a foundation of protection for almost every American
The majority of the workers are participating in SS by contributing through taxes and almost all the retirees in America are receiving social security benefits. In fact today 97% aged 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.
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 the 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 by 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.
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 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 poor living condition since the year 2015.
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.
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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. The 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 research and study.
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 people of all color.
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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 a matter of your future, your children and your loved ones.