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Wondering what benefits you’ll be eligible for when you’re older?
This series of social security FAQs will help.
It’s important to understand your social security eligibility and how social security works, and at what age you can receive it.
Here are some answers to the most common questions.
What Is Social Security Income?
Social security is a federal income supplement program funded by tax dollars. Social security aims to assist people who don’t have an income and/or people who cannot work due to old age, disability, or other circumstances.
In fact, if you receive a paycheck, you already pay into social security. Each month, a small portion of your check is removed to help fund the program.
This guide over at HeardandSmith.com will answer some other questions about SS income.
How Does Social Security Work?
Because the deduction is automatic and based on what you earn, Americans pay into social security each month. That money is then reallocated to help people who need assistance with their income and to fund the program as a whole.
There’s a 12.4% social security tax applied to every dollar you earn. Most of it goes to current people who qualify for social security. The rest goes to help those who are disabled and cannot work.
When Am I Eligible?
Here’s one of the most popular social security FAQs: What is the social security age?
Americans can start receiving full benefits for social security at age 62.
However, there are incentives to wait if you are not currently in need of the money. For example, waiting until age 70 qualifies you for additional benefits—including a higher monthly payment. So if you plan to work a few more years or like your job, it could be worth waiting.
You can only receive social security after you start working. There are limits to how much you can earn at a job after you retire for this reason. Otherwise, people would receive two full salaries.
How Much Can I Receive In Social Security?
This number depends on how much you made during your lifetime.
Some people use a good rule of thumb to estimate their social security benefit amount was about 80 to 85 percent of their monthly income when they were working.
So if you received $4000 per month before retirement, you might qualify for about $3200.
The amount you received is based on income credits. SSA requires you to earn at least 40 credits of these before you qualify for benefits. Earning more can entitle you to higher benefits.
Social Security FAQs
The program’s been around for a long time, but there are still many social security FAQs.
The gist of it is this: it’s a federally funded program that assists people who can’t work (due to old age or disability) financially. Americans pay into it with our tax dollars each month.
At 62, you qualify for social security. The amount is based on how much you earned when you work.
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