Social Security is undoubtedly the most important social program of our nation. For almost eight decades, he was responsible for providing a financial base for tens of millions of Americans.
As the Association is extremely important, it has mostly misunderstandings. Back in 2015, MassMutual released a 10-question counterfeit online survey, with only 28% of 1,513 respondents passed (for example, who received seven or more answers correctly), Include only one person with a perfect score. This survey focused on the basic concepts of Social Security that adults of all ages should be familiar with.
In 2018, a subsequent counterfeit review of MassMutual was released, although it was only five questions and had targeted 1,007 adults aged 50 and over. Even with a focus on councilors, who would you think would prefer to be more than Social Security than the wider adult population, 47% failed to answer four or five questions correctly.
Everything you need to know about Social Security
With the understanding that information is a Social Security power, this is 55 exhaustive facts, you should know about our country's most important social program.
1. The Social Security Act was signed into law in the summer of 1935, but the first monthly payment was not made until January 1940.
2. Almost 63 million people receive Social Security benefits each month, including retired workers, survivors of deceased workers, the long-term disabled families, and families who can qualify in the three categories.
3. Long-term disability insurance or protection of survivors insurance also includes around 175 million workers and their families.
4. Social Security is not a right, with most beneficiaries earning their way to benefit at least 10 years' work.
5. To get a Social Security retirement benefit, you will have to earn 40 life-work credits, which can be achieved by a maximum of four annually. But do not worry, all credits amount to $ 1,360 in earnings this year, which means that you will have a maximum of $ 5,440 in your salary for 2019.
6. Of retired employees at present, 62% continue on Social Security to provide at least half their monthly income.
7. Of the 43 million retired employees, 34% rely on the program for 90% to 100% of their income.
8. However, Social Security has only planned to plan around 40% of its work, suggesting that it is not considered a basic source of income.
9. The retired average employee took $ 1,461.31 a month from December 2018.
10. Although Social Security does not make the rich rich beneficiary, it retains 22.1 million people out of poverty, according to analysis of Budget Centers and Policy Priorities.
On the rules that you would like to know about
11. Social Security benefits for retired employees can start at age 62, or any subsequent point. However, certain provisions may allow benefits for children or adults under the age of 62 to receive benefits.
12. Long-term disabled people are not required to have 40 life-time credits to receive benefits. The Ministry of Social Security has an increasing rate of age-based credit requirements to ensure that younger workers still have the opportunity to qualify for disability benefits.
13. Your full retirement age, or the age you are entitled to receive 100% of your monthly payment, is determined by your birth year. For most baby boomers, your full retirement age will vary between 66 and 67. For anyone born in 1960 or after, he is 67 years old.
14. Claiming any age benefits before reaching your full retirement age means receiving a permanent reduction to a monthly payment of up to 30%, depending on your birth year. On the other hand, staying up to the age of 70 to claim benefits could boost payment by an additional 24% to 32%.
15. The full retirement age will only increase two years – aged 65 to 67 – between the first payment in 1940 and 2022.
16. Retired employees are encouraged to hold on file. Every year a person is still taking advantage of their benefits between ages 62 and 70, their payment payment is about 8%.
17. Nearly three in five retired employees take their benefit before reaching their full retirement age. In the opposite, only 10% wait until after their full retirement age to claim their payment payment.
18. The maximum retirement employee can pay in one month after retirement in 2019 is $ 2,861.
19. The Ministry of Social Security can suspend some or all of your benefits if you start taking your payment before reaching your full retirement age. The retirement earnings test prevents Americans from working early to the mid 60's from "double-dipping" by earning a working salary and paying Social Security as well.
20. The retirement earnings test does not apply to beneficiaries who have reached their full retirement age.
21. Benefits retained from the retirement earnings test are not lost. With the exception of passing early, you will get these benefits back in the form of a monthly payment on reaching your full retirement age.
22. Social Security has an embedded clause known as Form SSA-521. If you are unfortunately to take benefits early, you can file a SSA-521 Form and ask for the benefit application to be deleted within 12 months of your benefits; Receiving the first. If approved, you only have to repay the benefits you have received, and your benefit can grow by around 8% per year.
23. In rare cases people who have never worked before can get a benefit. An example would be the spouse or ex-spouse of a primary or deceased worker.
On cost-living-Social Security adjustment
24. The Consumer Price Index for Urban Pay Winners and Clerical Workers (CPI-W) is the inflation tether that determines the annual lifestyle modifications of the program, or COLA.
25. The average CPI-W reading of the third quarter (July and September) of the previous year acts as the baseline, whereas the average CPI-W reading of the third quarter of the current year is a comparison. The next nine months is simple, it is not important to calculate COLA Social Security.
26. As the CPI-W data for a previous month was released by the Labor Statistics Office in the second week of this month, Social Security COLA will always be published during the second week of October.
27. There are eight major spending categories, and dozens of dozens of sub-categories, who are going to decide on the CPI-W.
28. COLA has been positive in all but three years (2010, 2011, and 2016) since it was introduced in 1975.
29. In years where the average third-quarter CPI-W reading decreases a year over the year, payment payments remain stable. Thank you, benefits can not be reduced due to inflation.
30. Social Security purchasing power has dropped by around 34% between January 2000 and January 2018, according to the Senior Citizens' Alliance. Blamed for this on the CPI-W without adequately enough costs in its weighting formula.
31. Not all beneficiaries will not necessarily receive COLA in a given year due to the innocent clause.
On how Social Security collects revenue
32. Social Security is only $ 2.9 billion of money in its asset reserves. These "asset reserves" are a fancy way of describing its whole net cash balances every year.
33. The asset reserves are required by law to be invested in special federal bonds and, to a lesser extent, debt certificates. From December 31, 2018, these assets averaged 2.85%.
34. The interest income from Social Security Assets reserves has created $ 85.1 billion for the program in 2017, and is expected to bring just over $ 800 billion between 2018 and 2027.
35. The program's work, in terms of revenue production, is the 12.4% of payroll tax on earned income. The payroll tax led to $ 873.6 billion of $ 996.6 billion collected in 2017.
36. Most employees are not responsible for the full payroll tax of 12.4%, with employers and employees sharing this accountability down the percentage by 6.2%. Only the self-employed paying the full amount (12.4%).
37. Payroll tax is applied to all earned income ranging from $ 0.01 to $ 132,900, from 2019. The highest "cap" has been converted to an annually with a # 39 ; The Average National Pay Index, and exists because of the above cap on the most monthly benefit full of retirement age.
38. More than 9 out of 10 employees will earn less than $ 132,900 in 2019, paying tax to the program on each dollar they earn.
39. Income earned exceeds $ 132,900 in 2019 to exempt from payroll tax. The amount that has been exempt has been four years from $ 300 billion in 1984 to $ 1.2 trillion from 2016.
40. Social Security benefits may also be taxable. In 2017, benefits taxation rose by $ 37.9 billion in revenue. However, this figure will be more than double over the next decade.
41. If gross income adjusted by a single taxpayer (AGI) plus half their benefits exceeds $ 25,000 (or $ 32,000 for married couple filing jointly), they will face federal income tax at 50% of & # 39; u Social Security benefit.
42. A second tier of tax on Social Security benefits was introduced in 1993, allowing 85% of Social Security benefits to be taxed if AGI plus half of the benefits were more than $ 34,000 for single taxpayers and $ 44,000 for couples who & # 39; n filed jointly.
43. These income thresholds that are related to taxation of benefits have never been adapted for inflation.
44. A Study by the Senior Citizens Alliance finds that 56% of households have some federal tax on their Social Security benefits.
45. Thirteen also set out Social Security benefits to a variety of degrees.
On the future of Social Security
46. The Trustee report published annually envisages that Social Security will completely reduce its almost $ 2.9 trillion in asset reserves by 2034.
47. In addition to the continuing retirement of infant infants, increased longevity, inequality of growing income, and low fertility rates are blame for Social Security deficiencies.
48. Social Security can not become bankrupt, thanks to the recurring revenue of payroll tax and benefits taxation. However, a benefit cut across the board of up to 21% may remain if the Congress does not implement the program.
49. Trustees report on the program's long-term (75-year) actuarial deficit at 2.84% of the program. That is, if payroll taxes increased by 2.84% today to 15.24% (12.4% + 2.84%), the program would not have to reduce benefits by 2092, and it would end in 2092 with enough of money in asset reserves to cover completely. A full year of payments to beneficiaries.
50. Social Security is estimated to face a deficit of $ 13.2 trillion between 2034 and 2092. The longer Congress is waiting to act, the greater this deficit.
51. The last major Social Security refurbishment took place in 1983. The bipartisan improvements during Reagan administration led to additional revenue through the introduction of benefits taxation and the gradual increase of the payroll rate. It also reduced spending due to the gradual increase in the full retirement age.
52. The most popular public Security settlement would be to raise or eliminate the earnings tax cap related to payroll tax.
53. To reform the program, you would need 60 votes of support in Parliament. It has been four decades since the Democrats or Republicans have so many deputies, suggesting that there is a need for bipartis support for improvement.
54. Democrats favor the erection or elimination of payroll tax cap. Comparatively, republicans prefer to graduate the full retirement age. Finding middle ground between these ideas has been clear.
55. Despite its problems, Social Security is one of the most cost effective programs, with more than 99% of revenue generated ending in the hands of qualified beneficiaries.