What is Social Security all about? A lot of people don’t know the ins and outs, and some are not quite sure if it will be around when they retire. For the most part, Social Security was meant to be the building block for your retirement income, primarily due to the fact that one cannot live longer than their Social Security benefit. It will be there as long as you live. Every so often, it can increase in value to help you keep up with inflation.
There is a process that goes on as it pertains to Social Security. That’s means there is a method to Social Security as it pertains to each working individual. The system is set up so that while you are working taxes are deducted from you income which basically allows you to pay into Social Security. This continues on throughout your working career, however once you retire or even become unable to work due to disability you are now in position to apply for the benefits you have accumulated or rather you have earned.
I used to wonder how the amount you receive was determined. Several factors are looked at or go into the computation to determine the amount you receive once you are eligible. The first factor you want to look at is how long did you work? Or rather how many years did you work?
Next on the list for consideration is how much income did you make during the time you were in the workforce. Finally when do you decide to collect your benefits. How old are you going to be? There are some qualifications that enable you to collect Social Security benefits such as earning 40 Social Security credits with your job. However your job must be covered by Social Security. You can actually control to an extent your Social Security payments. It works this way the longer you work which in effect allows you the opportunity to make more money the higher your Social Security payout will be.
The earliest age at which you can collect Social Security is 62. If, however you would like to increase your Social Security payouts you can wait until later to retire which puts more money in your bank account on a monthly basis. Another thing to consider in your retirement planning is if you qualify for retirement or disability then this puts you in a position where your spouse as well as your dependent children can also receive a pay out from Social Security on a monthly basis.
To get your benefits coming to you, you must apply using some specific forms. This can also be done online by phone or you can visit your Social Security office.