Social Security – How Important It Is for Senior Citizens?

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Financial security via Social Security holds immense importance for much of the elderly, therefore, many people start planning for their future from a very young age. Besides personal savings, there are several monetary sources that can provide you with financial security after retirement. These are employer pensions, gratuity, provident funds, and other types of investments, etc. The Social Security program is one of the benefit plans that aim to assist people in the U.S., by providing a significant income source to seniors. There are several benefits of this program, such as:

More than just a retirement plan

Social Security is not solely distributed for use as retirement income. There are additional types of benefits paid out under this program. The plan also provides financial assistance to the following categories of people:

— For the disabled

— To a family member of an employee/worker (spouse, child, parent) who has died

— To a family member (spouse or child) of a person who is receiving benefits under this plan

When can you enroll for this plan?

As Social Security benefits offer more than retirement income, you may be able to apply to receive benefits before you retire, depending on your situation. Institutions like The Golden Opportunity Network in Westlake, Ohio provide financial information and guidance to elderly members. By providing access to a highly experienced referral network of planning professionals, they offer a secure and safe process for retirees to effectively plan for their future.

How do you qualify for Social Security?

During any period that you are earning an income, you pay a Social Security tax and earn work credits. You earn one credit for every $1,300 that you make, up to a certain annual limit.  You are eligible to earn a maximum of four credits each year, but keep in mind that not all kinds of income automatically count as Social Security earnings. You will need to have accumulated a minimum of 40 credits to qualify to receive retirement benefits. For an average earning person in the U.S., this can typically occur after ten years of work.

How does the retirement age you choose impact your retirement income?

The retirement benefit that you will receive under this plan will depend on the age at which you opt to retire. If you wish to retire before full retirement age, the amount paid to you will be less than what you will receive if you delay retirement until your full retirement age.

On the other hand, if you delay taking monetary benefits past your full retirement age, then you will receive an increased benefit amount until you begin taking benefits, or until you turn 70.

Disability Benefits

This plan provides Social Security disability benefits (SSDI) or Supplemental Security Income (SSI) to a person who has a qualified physical and/or mental disability, provided the individual’s condition meets the program’s specified criteria. If you receive benefits from any other government/private disability plan, you may not be eligible for benefits under the Social Security disability plan. To be considered for SSDI benefits, its required for a person to submit a note from their doctor that confirms the disability as well as satisfies the disability requirements under the plan.

Conclusion

There are several million people who depend on Social Security for their income or as a supplement. This number continues to grow as more and more people reach the age of retirement.  The above explanation of SS benefit distribution will help you get the most out of the program. In addition to receiving Social Security benefits, many seniors take the opportunity to increase their savings by selling an unneeded life insurance policy. This is commonly known as life settlement.