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OTIUM - Noticias sobre las tendencias y curiosidades

Retirement in the United States: what is social security and how does it work?

Below we will explain what requirements you need to meet in order to belong to the U.S. Federal Government's program.

redacción OTIUM redacción OTIUM
22/04/2022 01:47
en Economía
Retirement in the United States

Retirement in the United States

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Thousands of people speakers wonder, when they reach retirement age in the United States, how to join the Social Security program offered by the U.S. federal government. Below we will explain exactly what this program is and how it works.

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Social Security is a U.S. federal government program that provides assistance to people who meet certain requirements for different circumstances. Among the most common situations in which you or a family member can apply for assistance through Social Security are:

  • During retirement
  • In the event of disability
  • Financial assistance in case of widowhood

It is important to note that it is necessary to obtain a Social Security number to work legally in the United States. With this number you will be able to make contributions such as paying taxes, which will entitle you to benefits when you retire.

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How to obtain a Social Security number?

In order to obtain a Social Security number, it is necessary to complete the corresponding process on the website. If you are not a U.S. citizen, you must show a work permit from the Department of Homeland Security (DHS).

The Social Security number is the initial link and ongoing connection to Social Security. It will help identify and keep a correct record of your wages or self-employment income. It also serves to track your record when you begin receiving your Social Security benefits.

Remember to always keep your Social Security card in a safe place, and avoid unnecessary disclosure. In many cases, even if your card is lost, you may not need a replacement. Just knowing your Social Security number is enough.

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What benefits does Social Security provide?

In the event of Retirement, Social Security is part of the plan for almost all workers living in the United States. It will provide replacement income for eligible retirees and their families.

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How do retirement benefits work?

Social Security from the U.S. federal government replaces a percentage of a worker’s pre-retirement income based on his or her lifetime earnings. That portion is based on your earnings 35 years later and varies depending on how much you earn and when you choose to begin benefits.

When you work, you pay into Social Security. That money is used to pay benefits to:

  • People who have already retired
  • People with disabilities
  • Surviving family of deceased workers
  • Dependents of beneficiaries

The money you pay in taxes is not kept in a personal account. The money is used to pay people who are currently receiving benefits. Unused money goes into a Social Security trust fund that pays monthly benefits to you and your family when you begin receiving retirement benefits.

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