Social Security Trends

2553 Words11 Pages
The talk of Social Security and Medicare has been the topic of many conversations not only at Congress but also amongst many American dinner tables throughout the years. People are always wondering if Social Security is going to be around when they are too old to work, how their medical expenses will be taken care of and why is the program the way it is. For this paper we are going look into the history of each program and how they came about as well as the current configuration and lastly the future of both of them. Social Security Social Security originally began in 1935 and was started by President Roosevelt. The program began from scratch with no office to work out of, no employees, and no funding. It literally began from the ground…show more content…
“A recent survey found it was a major source of income for 70 percent of retirees and a minor source for 23 percent.” (Tannahill, Social Security Retirement Benefits- The Basics) Social Security is not intended to be the only source of income for a retiree. They should be planning for the future financially. In order to qualify for Social Security a client needs 40 quarters of coverage to qualify for full coverage. Currently one quarter of coverage equates to $1,200 of earnings. Four quarters is $4,800. Once they hit 40 quarters they qualify for coverage based on their work record. Calculating your future potential Social Security benefits is easier than ever now. A client can create an account online to view what their projected coverage may be at particular ages. (I created an account for myself and it does go back to every year and show my history of earnings. As of right now I would be projected to receive $1520 every month.) This will allow them to estimate what they will be receiving from Social Security as well as how much more income they will need when they retire in order to live comfortably and not worry about unexpected cost. Social Security is calculated based upon the previous 35 years of with the highest earnings when they turn 60 years of age. This is pulled from w-2s. That number is then divided by 420 which is the number of months in 35 years. A person becomes eligible to start receiving this money when they turn 62, die or are disable before the age of 62. For someone who starts to receive benefits earlier they will receive a reduced amount and for those who wait to receive befits past the age of 67 the will receive a Delayed Retirement Credits (DRC). Clients who receive Social Security before the reach full retirement age will be
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