4 Amazing Facts Social Security, 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:
4 Amazing Facts Social Security
Approximately 21% of married couples depend on their benefits for a minimum of 90% of their retirement income
It has been 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 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 which 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 up 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 age 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 what 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 your 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.