A Quick Explanation of Social Security

Written By Alla Levin
October 26, 2021

A Quick Explanation of Social Security

Finances can get confusing, intertwined, complicated, all of the above. And as Baby Boomers start exiting the workforce, those individuals need to make sure they have their information correct. No one wants to retire just to go back to work because of a miscalculation! You want to make sure you have enough money when you retire so that never ends up happening. 

Yes, you will have the benefits of social security when you retire, but not many people know what that actually means. To help clarify, here is what social security is all in all (according to Investopedia): 

Social Security is the term used for the Old-Age, Survivors, and Disability Insurance (OASDI) program in the U.S., run by the Social Security Administration (SSA), which is a federal agency. Though it is best known for retirement benefits, it also provides survivor benefits and disability income.

So in all reality, Social Security is the umbrella term that encompasses the programs offered by the United States government. Most commonly, Social Security is only really thought of as retirement benefits, but that is just the tip of the iceberg. Social Security helps people with disabilities, PTSD, or other injuries stay afloat despite their condition. 

Depending on a given person’s situation

With this being the case, it does get a little hairy sometimes. Depending on a given person’s situation, they may apply for Social Security but be denied. This would require a said person to take legal action to prove they do require the services of Social Security (click the proceeding link to find a Social Security disability attorney in Virginia).

Still, “Social Security was never meant to be the only source of income for people when they retire. Social Security replaces a percentage of a worker’s pre-retirement income based on your lifetime earnings. The number of your average wages that Social Security retirement benefits replace varies depending on your earnings and when you choose to start benefits.”

Explanation of social security

Whatever the case is, Social Security is here to help. People may not like it when those taxes come out of their paycheck, but as soon as they reach that age of retirement, they could be counting their blessings as they finally shut the door on their professional careers. 

An important thing to mention is that the “retirement age” is rising. With college expenses through the roof, inflation, and low entry-level wages, people have to work for longer than ever. The normal retirement age currently sits at 67-years-old, but that number should be expected to go higher as it has over the course of United States history. 

Regardless, the Social Security system is supposed to help you whenever the opportunity arises. Hopefully, its help comes in the form of retirement benefits, but if you were to suffer a serious accident, the program is set up to help you succeed whatever the circumstance. 

So there you have it: a quick overview of Social Security. If you would like to learn more about Social Security in the United States, visit ssa.gov

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