Social security is paid for by taxes on every working employee and business owner.
This money goes into federal hands to pay for retirees around the country who have little or no way of attaining an income, along with other people who meet specific standards.
Social security is a way of the US giving back a fair return on the investments people have made throughout their lives by paying taxes.
People who receive benefits fall within four categories.
The categories are:
One of the most well known (and most popularly used) is Medicare.
Medicare Medicare is a part of social security benefits.
Medicare taxes are a percentage of the overall social security taxes one pays in each paycheck.
For example, social security taxes could be taking out 6% of your paycheck.
Of that 6%, 1.
5% goes straight to Medicare.
This 1.
5% goes into a federal trust fund that goes to pay the cost of Medicare beneficiaries' hospital and health related bills.
According to SeniorLivingCommunities.
com, the Medicare program is divided into four parts.
Part A covers hospital and inpatient services and Part B covers doctor visits and other outpatient services.
Together, Parts A and B are referred to as original Medicare.
Part C, also known as Medicare Advantage, makes Medicare-covered services available through private health plans, such as HMOs, PPOs, and private fee for service plans.
Part D was created under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to cover the costs of prescription drugs.
When will I get Social Security Benefits? Assuming you are not disabled or lose a loved one, most people receive their benefits when they retire.
Deciding when to retire is one of the most important things a person can decide on based on their retirement income.
The amount of benefits a person receives is based on when they were born and how old they are when they retire.
According to the Social Security Administration's website, if your full retirement age is older than 65 (that is, you were born after 1937), you still will be able to take your benefits at age 62, but the reduction in your benefit amount will be greater than it is for people retiring now.
Here's how it works if your full retirement age is 67:
This money goes into federal hands to pay for retirees around the country who have little or no way of attaining an income, along with other people who meet specific standards.
Social security is a way of the US giving back a fair return on the investments people have made throughout their lives by paying taxes.
People who receive benefits fall within four categories.
The categories are:
- Retirees
- Disabled persons
- Survivors of workers who have died
- Dependents of beneficiaries
One of the most well known (and most popularly used) is Medicare.
Medicare Medicare is a part of social security benefits.
Medicare taxes are a percentage of the overall social security taxes one pays in each paycheck.
For example, social security taxes could be taking out 6% of your paycheck.
Of that 6%, 1.
5% goes straight to Medicare.
This 1.
5% goes into a federal trust fund that goes to pay the cost of Medicare beneficiaries' hospital and health related bills.
According to SeniorLivingCommunities.
com, the Medicare program is divided into four parts.
Part A covers hospital and inpatient services and Part B covers doctor visits and other outpatient services.
Together, Parts A and B are referred to as original Medicare.
Part C, also known as Medicare Advantage, makes Medicare-covered services available through private health plans, such as HMOs, PPOs, and private fee for service plans.
Part D was created under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to cover the costs of prescription drugs.
When will I get Social Security Benefits? Assuming you are not disabled or lose a loved one, most people receive their benefits when they retire.
Deciding when to retire is one of the most important things a person can decide on based on their retirement income.
The amount of benefits a person receives is based on when they were born and how old they are when they retire.
According to the Social Security Administration's website, if your full retirement age is older than 65 (that is, you were born after 1937), you still will be able to take your benefits at age 62, but the reduction in your benefit amount will be greater than it is for people retiring now.
Here's how it works if your full retirement age is 67:
- If you start your retirement benefits at age 62, your monthly benefit amount is reduced by about 30 percent.
The reduction for starting social security benefits at age- 63 is about 25%
- 64 is about 20%
- 65 is about 13.
3% - 66 is about 6.
7%
- If you start receiving spouse's benefits at age 62, your monthly benefit amount is reduced to about 32.
5 percent of the amount your spouse would receive if his or her benefits started at full retirement age.
(The reduction is about 67.
5 percent.
) The reduction for starting benefits as a spouse at age- 63 is about 65%
- 64 is about 62.
5% - 65 is about 58.
3% - 66 is about 54.
2% - 67 is 50% (the maximum benefit amount)
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