If you’re like most Americans, you probably think of Social Security as a retirement benefit that will provide income for you once you reach age 65 (or 67 if you were born after 1960).
But according to Bill Schantz of Mid Atlantic Financial LLC, there’s a lot more to Social Security than just retirement benefits. In fact, there are three little-known facts about Social Security that every American should know before they retire. These are facts that not a lot of people know, which is why we have labeled them as secrets, and they include the following:
1. Social Security is more than just a retirement program
While it’s true that the majority of Americans use Social Security as a retirement program, it’s important to remember that it’s much more than that. Social Security also provides disability and survivorship benefits, which can be extremely important if you or a family member becomes disabled or passes away.
2. Your benefits are based on your earning history
Social Security benefits are based on your earning history, so it’s important to make sure that your earnings are accurately reported. If you’ve worked for multiple employers over the course of your career, be sure to check that each employer has accurately reported your earnings. You can check your earnings history online at the Social Security Administration’s website.
3. You can start receiving benefits as early as age 62
Many people wait until they reach their full retirement age to start receiving benefits, but did you know that you can actually start receiving benefits as early as age 62? If you start receiving benefits early, your benefits will be reduced, but it may still be worth it if you need the income.
Keep these three facts in mind as you approach retirement, and you’ll be better prepared to make the most of your Social Security benefits.
Bill Schantz Explains What is Social Security?
Social security is a government program that provides financial assistance to people who are unable to work due to old age, disability, or unemployment. The program is funded by payroll taxes paid by workers and employers. Social security benefits can be used to cover basic living expenses such as food, housing, and healthcare.
The social security program is administered by the Social Security Administration (SSA). The SSA is responsible for determining who is eligible for benefits, calculating benefit amounts, and issuing payments.
Benefits are typically paid out monthly, and the number of benefits you receive will depend on your work history and earnings. To qualify for benefits, you must have worked and paid into the system for a minimum number of years.
If you become disabled or reach retirement age, you may be eligible for social security benefits even if you have not worked enough years to qualify. If you are the spouse or dependent child of a worker who is receiving benefits, you may also be eligible for benefits.
The Social Security program is one of the most important safety nets for Americans. It provides financial assistance to millions of people who are unable to work due to old age, disability, or unemployment. If you are eligible for benefits, it is important to understand how the program works and what you can expect in terms of payments.
Final Word from Bill Schantz
Every American recognizes that the Social Security program is a safety net for them and will provide them with income after they have retired. However, Bill Schantz says that it’s best to recognize some of the lesser-known secrets of the Social Security program, so that you are better prepared to handle retirement.