Definition and Example of Social Security
Social Security is a government benefit program that pays benefits to retirees and employees with disabilities and their family members and survivors. This blog post discusses introduction, Types of benefits, Impact etc. Of Social Security.
Alternative: Seniors, Survivors, and Disability Insurance Program
For example, employees who have paid for Social Security for at least ten years are generally eligible for the Social Security retirement benefits.
When they are 62 years old and the full benefits if they choose to wait until full retirement age (subject to birth).
A policy or practice, or program of social provision (such as social insurance or assistance) for the economic and social well-being of an individual and their family.
U.S. government program established in 1935 to include old age and survivor insurance, contributions to state unemployment insurance, and assistance for the elderly
How Social Security Works
Social Security is funded by a 12.4% tax difference between employers and employees; self-employed people pay 12.4%. This tax money is deposited in two Social Security trust funds: the Adult and Survivor Insurance Fund (OASI) and the Disability Insurance Fund (DI) .2
The Administration pays the current benefits and administrative costs with these trust funds. Unspent funds are in trust funds and as Treasury bonds investment.
Impact of Social Security
Public safety has a profound effect social standards. Provides employees and their own families who have access to health care as well protection from loss of income. However a short period of inactivity or illness or delivery time or longer due unemployment or injury at work. Provides adults who are guaranteed income from their income years of retirement. Children benefit from social media programs designed to help them families face the cost of education. Because employers and businesses, public safety helps to maintain stable labor relations and a productive workers. And it can contribute to social cohesion and global growth and development. In order to strengthen the standards of living, to strengthen the effects of structural and technological change to people and thus provide a foundation a more constructive approach global trade
Types of Social Security Benefits
Although SSA is probably known as the American Elderly Retirement Plan. It also pays benefits to people outside the area. Here’s the official website
Social Security Retirement Benefits
As an employee earns money during working years, he earns four credits per year. Forty credits are in need to make retirement benefits. So, generally, if someone has worked and paid for SS for at least ten years, they will be eligible for retirement benefits.
The amount of retirement benefits that a retiree receives depends on their lifetime income which has changed the inflation rate and how old they are if they choose to start receiving benefits.
Although people may be able to start receiving retirement benefits at the age of 62, they will receive lower pay if they wait until their full retirement age. This is because the full years of retirement work depend on when you were born.
Benefits of Social Security For Disabled
Social Security also provides benefits to employees of all ages. Who can no longer work due to an incurable or potentially fatal mental or physical condition.
Disability benefits, like retirement benefits, are conditional on employment. This includes a person’s age at the time of the disability.
How long they worked for 3 to 10 years before the disability. And how long they worked together before the disability. To be eligible for disability benefits under the scheme. You must have worked for at least 3 to 10 years prior to becoming disabled. Including the quarter during which you were not able to work.
Benefits for Families
When a recipient begins receiving retirement or disability payments, their family members may also be eligible. With a family size limit ranging from 150 percent to 180 percent. Family members can get up to 50% of the beneficiary’s utilization.
The relative worth of a benefit is clear by the beneficiary’s relationship with it, as well as other criteria. Such as their age, disability status, marital status, student status, and child care obligations.
| Type of Family Member | Minimum Eligibility Requirements |
|---|---|
| Spouse age 62 or older | Eligible |
| Spouse of any age | Eligible if caring for beneficiary’s child who is younger than age 16 or disabled |
| Child or legal dependent younger than 18 | Eligible if unmarried |
| Child or legal dependent 18 or 19 | Eligible if unmarried and a full-time student |
| Child or legal dependant age 18 or older | Eligible if unmarried and has a disability that started before the age of 22 |
| Grandchild | Eligible if dependent on the beneficiary and one of the following is true: the child’s biological parents are deceased or disabled or the beneficiary legally adopted the grandchild |
The main criticism of Social Security is that in the future, in early 2034. The trusts will no longer be able to pay the full benefits planned under current law.
Although the perceived shortage of funds is due to low birth rates and increase in the life expectancy of employees. Thus some groups criticize the management of trust funds is self-sufficient.
The Social Security Advisory Board, for instance, indicates that trust funds investments are only in Treasury bonds. Also which have been relatively poor in comparison to the stock market. The Board noted that higher profits could significantly reduce their expected financial deficits if trust funds are invested in stocks.
Sukhpreet Kaur
