CHAPTER 24
Social Security 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“I don’t mind being a senior citizen; I just don’t look forward to graduation.”
Do I Need to Read This Chapter? ●
Do I know how social security works?
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Am I trying to decide whether to collect social security at age 62 or collect it later?
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Am I a woman who is counting on social security? Am I alert to all my options?
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Am I, or any family members, eligible for nonretirement social security benefits such as Medicare, disability income, or survivor’s benefits?
ome people overlook their social security benefits when calculating their projected retirement income. Other people may count too much on these benefits. Financial planning is a system that must encompass all phases of investments; so know the rules of social security—because for many of us, it has become our most common investment.
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How Does the System Work? Both you and your employer contribute a percentage of your wages to social security, up to a designated maximum each year, as well as a percentage to Medicare with no limit. These contributions by both employees and employers are broken down into three separate trust funds: OASI—old age and survivor insurance. This is a self-contained account separate from other U.S. Treasury revenue which will fully take care of
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