A financial safety net for older Americans, Social Security was established in 1935 by the Social Security Act. Before that, support for the elderly wasn’t a federal concern. It mostly fell to state, towns and of course families.
The program is based on contributions that workers make into the system. While you’re employed you pay into Social security and then you receive benefits later on when it’s your turn to retire. Contributions take the form of the Federal Insurance Contributions Act(FICA) taxes that are withheld from most paychecks.
The following is a general overview of Social Security:
* Of the 12.4% paid on your behalf, if 6.2% is paid by you, 6.2% is paid by your employer.
* You earn 1 credit for every $1200 in annual earnings, up to 4 maximum of credit per year.
* Must work at least 10 years, 40 credits are necessary to become eligible to receive benefits.
* The 2014 average Social Security individual benefit is $1,294 for couples $2,111.
* 2014 Maximum benefits is $2,642.
* Your Social Security benefits is determined by your highest 35 years of earnings.
* In 2014, the maximum taxable income is $117,000.
* Average retiree pays an average for housing all-inclusive $18,500 annually couples $26,400 AssistedLivingAbroad LLC
Sources: Secure Wealth Planning Group, Boca Raton, Fl.
AssistedLivingAbroad.net LLC Boca Raton, FL.