- Today, Social Security is the largest source of income for most elderly people. This is sad to hear.
- Social Security was NEVER intended to be a sole source of income for people, as it is being used today. The statement strongly encourages people to save their own funds to live off of and use Social Security as a supplement.
How are retirement benefits calculated?
- My Social Security statement lists that I have accumulated 19 credits at this time, and therefore, do not qualify to receive any retirement benefits yet.
Other Benefit Quantities Listed
- Currently, I do have enough credits (with 19) to qualify to receive disability income. If I were to become disabled right now, I would receive $1,485 per month in disability income.
- Additionally, I have accrued enough credits to qualify for a total of $3,315 per month of family survivor income, if I were to die right now.
- In order to get Medicare, you have to have accumulated at least 40 credits from earned income, and be 65 years old.
- Since I do not fall in to either of those categories, I am not eligible for this.
- In 2016, Social Security will begin paying more out in benefits than we collect in taxes.
- Just as a reminder, Social Security is paid as a part of your taxes from your paycheck.
- Without changes, by 2037 the Social Security Trust Fund will run out! Awesome!
- Additionally, in 2037, Social Security will only be able to pay out 76 cents of every Dollar of scheduled benefits.
What is the government doing to extend the life expectancy of Social Security?
To remedy the problem of Social Security running out, the government is, in short, raising the normal/full retirement age.
The table at the link below shows the different full retirement ages, according the year in which an individual was born.
If you are like me, and was born after 1960, the full retirement age is now 67 (even though you can begin receiving Social Security benefits at a discounted/reduced rate at age 62, no mater when you were born).
How should this be used in personal finance planning (for retirement, etc)?