What you should know about Social Security income

by User Not Found | May 26, 2011

Perhaps you have heard from a friend or associate that you should start looking into Social Security income.  Many people aren’t aware of what Social Security is and how they should go about obtaining these funds.   This article will explore what you need to know about receiving your Social Security income.

 

What is the Goal of Social Security Income?

The goal of Social Security income is to make sure that seniors do not suffer from poverty.  Like other governmental programs, such as Medicaid services, and assistance with health care for veterans, Social Security income was instituted to make sure that seniors remain happy and healthy throughout their golden years. This program is funded through payroll taxes, which go into an old-age, survivors and disability insurance programs.   In fact, this program is sometimes called OASDI, which stands for “Old Age, Survivors and Disability Insurance.”

 

Do You Need a Social Security Lawyer?

Social security is a complex issue, and there are a lot of current changes that are potentially in the works.   For example, the government recently decided that there would not be a cost of living adjustment (or COLA) for Social Security pensions in the next few years.  This means that Social Security income will not be adjusted to reflect inflation.   Under the circumstances, it is a good idea to have a Social Security lawyer to assist you to make the right decisions.  

One question that you might want to ask a Social Security lawyer is how the absence of cost of living adjustments will impact your taxes.  Also if you decide to take a part-time job, you might want to find out the big picture concerning how it will affect your income.  A Social Security lawyer will also help you to understand if you need to make changes in your retirement plans based on current Social Security changes. Another issue that you might want to discuss with a Social Security lawyer is how your Social Security income might change if you go to a nursing home.  Believe it or not, living at a nursing home could potentially change or stop the funds that you are receiving.

How Much Social Security Income Will You Receive?

Throughout the course of your career, the Social Security Administration has kept track of your income.  The funds that you are now entitled to receive depend on how much money you made over the years and also when you start receiving your benefits.

For retired people over the age of 65, Social Security income accounts for about 40% of people’s income.  About one third of elderly Americans depend upon Social Security for 90% of their income according to Congress’ Joint Economic Committee.  This percentage does not necessarily mean that this will be the case for your particular situation.   Of course, these factors depend very much on your own financial situation and work history.

When Can You Start Getting Your Social Security Income?

So when can you begin receiving benefits from Social Security?  The earliest age when you can start receiving any benefits is 62.   However, if you wait until you are older, experts say that it can lead to a higher check each month.  Therefore, some advisors tell seniors that if they are healthy and have a job, they might want to consider delaying receiving your income for as long as possible.  Again, this is another question that you might want to raise with your Social Security lawyer.

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