Retirement is something that no one can avoid. No matter how successful, brilliant and dazzling a person is, he or she will still end up old and weak, needing care and attention in their basic needs. However, in this brutal world filled with competitions where every bit of attention and effort is required in order to get by, people won’t necessarily have the time to take care and provide for their old parents as their hands are already filled with their responsibilities towards their families.
Fortunately, social security was established in order to help people with their retirement. With social security, people are given the chance to save and invest a portion of their income in order to prepare for their retirement. And once they reach their retirement age, beneficiaries of the security plan or program will receive monthly payments based on their accumulated contributions to the security plan during the times they were earning.
For a better understanding of social security, here are 5 things you should know about social security
- How does it work
Basically, social security works like a time deposit. In a social security plan, the agency deducts a portion of your income regularly and invests it in their portfolio of businesses. And as you constantly contribute to your security plan via the deductions, the amount will naturally increase and earn interests. And once you reach retirement age, you or your beneficiaries will be eligible to withdraw your security plan via monthly payments or in some cases lump sum payments.
- Retirement age
Take note that you or your beneficiaries can only receive the benefits of your security plan once you reach your retirement age or in some cases, death, disability or other terms stipulated in the plan. According to the law, if a person is born between 1943 to 1954 or earlier, then their retirement age is 66 years old. On the other hand, if they are born in 1955 then their retirement age will be 66 years and 2 months with an increase of 2 months per year up to 1959. As for those born beyond 1960, then their retirement age will be 67. It is very important that you know your retirement age as it retiring earlier from your retirement age will yield less benefits compared to retiring on your retirement age.
- Benefits for your family
Not only will you receive benefits upon retirement but your family as well, as long as they fit the criteria such as disability, or full-time students and at the same time, underage family member or other conditions set on the security plan. To know more, it is best to acquire a Social security card printout and contact representatives of the agency.
- Benefits if you die
Upon death, your family members can still collect your benefits on behalf as long as they are eligible. Some of the usual conditions include:
- A widow that is 60 years old and above
- Disabled family member
- Unmarried children younger than 18
Lastly, should you get involved in an accident that suddenly caused you to become a disable, then you are automatically qualified to receive your benefits despite not reaching the retirement age. However, there are many conditions and requirements that you have to fulfill before you get approved for your benefits. Thus, it is highly recommended to produce and safe keep all your medical records, tests, diagnosis that lead to your disablement.