What is the social security?
The social security is a program that uses public funds to provide income and health insurance to retired persons, the poor, the disabled, and other groups. The social security is one of the largest government programs in the world that pays out to the retired, poor, disabled people. The employers and employees have to pay social security taxes. The amount raised from these taxes is used to provide benefits to the people who have reached the retirement age or disabled persons or the people who are eligible for these benefits.
The social security benefits:
Retirement benefits: The retirement benefits are applicable to the person from the age 66. But in the case of beneficiaries, the person can receive benefits from the age 62 but with the reduced rate. The social security is increased by 8% every year that a beneficiary delay receiving benefits up to age 70. To obtain these benefits the person has to work for at least 10years.
Disability benefits: The disability benefits are given to the people who have become disabled for at least five months and may not be able to recover from that medical conditions and also for the people who may not be able to work due to birth disabilities.
Survivor’s benefits: The survivor benefits are provided to the children and widows or widowers of social security beneficiaries. It is mainly used to provide support to the retiree’s spouse until they pass way.
Supplemental security income: The supplemental security income is used to provide support to the people above 65years and who are blind or disabled and has less financial resources.
Medicare: The Medicare is a national insurance program specially designed for people who have disabilities, permanent kidney failure or other deadly diseases. It is not similar to Medicaid.
The components included in the social security calculator:
Determine the ideal application age:
- Birth year: The birth year of the retiree.
- Life expectancy: The expected lifespan of the retiree.
- Investment returns: The returns on the investments made.
- Cost of living adjustment: The cost of adjustments made after retirement.
Compare two-application ages:
- Retirement age: At what the person is retiring.
- Monthly payments: The monthly payments made by the retiree.
Using this social security calculator will help to determine the ideal age to apply for social security retirement benefits based on the age, life expectancy, and average performance. It is also used to compare two social security retirement benefits applicants ages.