As indicated earlier, employees and employers each pay 6.2% (up to a salary limit of $132,900 in 2019) of an employee’s earnings for Social Security; 1.45% of earnings for Medicare. These taxes potentially fund the four categories of Social Security benefits. These current tax payments into Social Security are being dispersed to those receiving benefits […]

You won’t get rich on Social Security benefits; the estimated 2019 benefits from the Social Security Administration are below. Social Security helps, but it will not typically provide all the money that is needed in retirement.  Currently, the Social Security Administration estimates that Social Security (retirement benefits) replaces about 40% of an average (middle income) […]

In essence, Social Security programs are funded through payroll taxes. Employees and their employers each pay 6.2% (4.2% for employees in 2011 and 2012) of earnings for Social Security taxes; 1.45% of earnings for Medicare taxes. Medicare is the country’s basic health insurance program for people age 65 and older, and for many people with […]

As indicated above, Social Security was initially focused on retirement benefits, but the program expanded through the years to enhance economic security for a variety of Americans. There are currently four categories of Social Security benefits: Retirement benefits – partial benefits available at age 62; full benefits are a function of birth date Disability benefits […]

So, do you think the Social Security taxes that you currently pay go into a trust fund to pay you retirement income in the future? The answer to that question would be “no”. In the next few blogs we’ll take a look at Social Security – the basics of how it works, and how it […]