Social Security

What is Social Security?

• Social Security is a federal program that provides retirement, disability, and survivor benefits to eligible workers and their families.

How is it Funded?

• Funded through payroll taxes under the Federal Insurance Contributions Act (FICA).
• Both employees and employers contribute 6.2% of wages up to a certain limit.

Key Benefits:

1. Retirement Benefits:
   • Available to workers who have paid into the system for at least 10 years.
   • Full benefits typically start at age 66-67, but early retirement can begin at 62 with reduced benefits.
2. Disability Benefits:
   • For workers who have a qualifying disability and sufficient work credits.
   • Provides financial support if you’re unable to work due to a disability.
3. Survivor Benefits:
   • Paid to family members (e.g., spouses, children) of deceased workers who qualified for Social Security.

Important Points:

• Social Security Number (SSN): Used to track your earnings and benefits.
• Cost-of-Living Adjustments (COLA): Benefits are adjusted annually to keep up with inflation.
• Earnings Test: Limits how much you can earn while receiving benefits before reductions apply.