Social Security Information

11/14/2013

What is Social Security?

Social Security is a social insurance program that provides old-age benefits for retirees and their survivors, disability insurance for workers and survivor benefits for dependents. It is called an entitlement because congress has set eligibility criteria and if you meet the criteria, you are entitled to the benefits.

As social insurance, the system does more than provide a base of income for the retired worker; it consciously redistributes wealth to adjust for other inequities in society and also provides financial relief to many who might otherwise have to provide full support to aging or disable relatives.

How is Social Security Financed?

Social Security is financed by matching contributions from employers and employees. Employees currently pay 6.2 percent of their earnings, up to a maximum of $57,600 into two separate trust funds - - 5.6 percent goes into the Old Age and Survivors Insurance (OASI) fund and 0.6 percent is funneled into the Disability Insurance Fund. Employers match this amount.

Hardly a day goes by that people getting Social Security aren't told by some so-called expert that their benefits are gradually driving the federal deficit and pushing America into a deep hole.

The nation's crushing debt burden will not ease, these thinkers insist, until our lawmakers confront, and then tame, America's highly visible entitlement programs, and by entitlements they make it clear they include Social Security.

Social Security does many things. For the poorest and most vulnerable elderly, it is their primary source of income. For many families facing hardship following a death, disability or unanticipated retirement, the program lightens their burden. Social Security also protects nine out of ten workers and their families and provides benefits each month to more than three million children.

But there is one think Social Security doesn't do. It does not contribute to the continued growth of the federal budget deficit. Social Security is totally self-funded, and its growing reserves - - another $60 billion this year - - provide a stable financial base for current and future retirees. Based on this up-to-date information we can put to rest any rumors about the Social Security system going broke.

Some groups, many claiming to represent younger Americans, blame Social Security and older people for the growing federal deficit. Not only is their argument false and irresponsible, it is actually irrelevant to the debate. Older Americans know that the fiscal and social deficits need to be addressed but tinkering with Social Security is a touchy situation and definitely not the way to ease the burden.

Everyone should be aware of the fact that information on Social Security is readily available. Visit the Official Social Security Website for more information.

Related Articles

Fly Smart

7/20/2013

When you fly on the commercial airlines of the United States, you are flying on the safest, most efficient form of transportation.

How to Beat a Speeding Ticket

11/17/2013

The most important aspect to consider in avoiding a traffic ticket is to be aware of where you are in the current traffic pattern. Many people will tend to slow down for the first two days after receiving a ticket. But a lot of people don't.

Your Consumer Rights

7/20/2013

Consumer credit reporting agencies (CRAs) collect credit information on you from banks, department stores, credit card companies, and other types of financial institutions that may extend you credit.

Why Buying is Not Always Better Than Renting

11/17/2013

How many times have you heard that you should buy a house because it is an investment and when renting you have nothing to show for it? And that your monthly mortgage check would build equity for you?

Guide To Police Scanning

11/19/2013

Agencies may designate and use 10-40 and above to suit their own needs.

Fifteen Things You Should Know when Ordering Anything from Anyone by Mail

10/21/2013

Have you ever sent away for something by mail and waited... and waited... and waited? Maybe you didn't receive what you wanted or what you thought you were ordering. Perhaps you didn't receive a reply at all.

Understanding What is Going On Behind The Scenes

11/17/2013

Has anyone noticed that the world is growing wickeder and wickeder? I sure have. Can you remember a few years back when human beings would give each other the benefit of the doubt rather than jump to conclusions?

What Your Social Security Number Tells About You

12/10/2013

Your social security number is a unique identification. You are the only person who has that number. But did you ever wonder what the numbers in your social security number mean?

Why "Lottery Systems" Don't Work

12/10/2013

It is very tempting to play the lottery. Just last week, there was a lottery in my area that had a grand prize of $110 Million! What you could do with all that money. Unfortunately, the odds of winning that prize were 1 in 54.9 Million.

Terms of Use

All content provided on this website is for general informational purposes only. No warranty is expressed or implied. Your use of this website is subject to our Terms of Use.