Signing up for Social Security Program at the time of retirement has become a regular practice for everybody. In fact, Social Security is the major source of income for most of the elderly people. Currently, approximately 165 million Americans are covered under Social Security Program. 51 Percent of current American Workforce has no private pension coverage and 34 percent has no savings for their life after retirement and are highly dependent on the benefits from Social Security Program. Knowing the following facts will give you a complete understanding of what social security is and how it works:
Fact 1#. Social Security is not just a retirement program. It provides essential life insurance and disability insurance protection too. The Supplemental Security Income (SSI) program gives benefits to disabled, blind and aged people without regard to previous workforce participation.
Fact 2#. The benefits provided by Social Security keep up with the changes in the cost of living. So, it’s a guaranteed, progressive source of income for elderly people.
Fact 3#. Nearly everyone who worked for 10 or more years is qualified for social security retirement benefits. According to the Social Security Administration, one needs 40 credits or quarters of coverage, earning at least $1,220 per quarter to qualify for the Social Security Program. One can earn a maximum of 4 credits per year earning $4,880 ($1,220 times four) per year.
Fact 4#. The total retirement benefit amount is calculated based on how many years the individual worked, his or her full retirement age and when he or she start taking benefits.
Fact 5#. Children and spouses of qualified retired workers too are covered by Social Security retirement program benefits. So, when someone dies, his or her children keep getting benefits from Social Security Program.
The Social Security Program played an important role in increasing overall life expectancy in America.