The primary source of income for adults sixty-five and older is Social Security. It is not a reliable source for the future due to the fact that soon the government will be paying more in benefits than it is receiving in taxes.
Social Security and Medicare are financed by employees and employers. Each pays 7.65 percent.
To be fully insured in the Social Security program, one must have completed forty quarters of work, with a quarter of coverage being $920 earnings per quarter in 2006. This amount is adjusted annually.
Retirement benefits are available to four classes of people: workers, spouse, children, and mothers or fathers with a child under age sixteen.
It is advantageous for someone to wait until they are seventy before withdrawing money from their social security account because, upon delaying payment beyond full retirement age, you can receive credits amounting to a specific percentage increase for each year delayed up until the age of seventy.
