February 28, 2018

YOUR SOCIAL SECURITY Rock Island, Illinois Office

By Cristina Vital
Social Security Manager
Rock Island Social Security Office

YOUR CONTRIBUTIONS HELP MILLIONS

Seeing taxes taken out of your paycheck can be confusing when you get your first paycheck. But understanding how important your contribution is can help. Your taxes are helping millions of Americans — wounded warriors, the chronically ill, and people with disabilities — as well as protecting you and your family for life. You can take pride in knowing you’re making an important impact with each paycheck.

By law, employers must withhold Social Security taxes from a worker’s paycheck. While often referred to as “Social Security taxes” on an employee’s pay statement, sometimes the deduction is labeled as “FICA” which stands for Federal Insurance Contributions Act, a reference to the original Social Security Act. In some cases, you will see “OASDI” which stands for Old Age, Survivors, and Disability Insurance.

The taxes you pay now translate to a lifetime of protection — for retirement in old age or in the event of disability. And if you die, your family (or future family) may be able to receive survivors benefits based on your work as well.

Because you may be a long way from retirement, you might have a tough time seeing the value of benefit payments that could be many decades in the future. But keep in mind that the Social Security taxes you’re paying can provide valuable disability or survivors benefits now in the event the unexpected happens. Studies show that of today’s 20-year-olds, about one in four will become disabled, and about one in eight will die before reaching retirement.

If you’d like to learn a little more about Social Security and exactly what you’re building up for yourself by paying Social Security taxes, take a look at our online booklet, How You Earn Credits, at www.socialsecurity.gov/pubs/10072.html.

If you have a friend who lost a parent when they were a child, they probably got Social Security survivors benefits. Social Security helps by providing income for the families of workers who die. In fact, 98 of every 100 children could get benefits if a working parent dies. And Social Security pays more benefits to children than any other federal program. You can learn more at www.ssa.gov/benefits/survivors/.

Do you prefer videos to reading? Check out the webinar, “Social Security 101: What’s in it
for me?” The webinar explains what you need to know about Social Security. You can find it at www.socialsecurity.gov/multimedia/webinars/social_security_101.html as well as on YouTube at http://www.youtube.com/watch?v=5hkLaBiavqQ.

Social Security is with you through life’s journey. You can learn more at http://www.socialsecurity.gov.

FIVE FACTS YOU MIGHT NOT KNOWABOUT SOCIAL SECURITY

Most people know at least something about Social Security. For decades, Social Security has been providing valuable
information and tools to help you build financial security. Here’s your opportunity to find out a little more, with some lesser-known facts about Social Security.

1. Social Security pays benefits to children.

Social Security pays benefits to unmarried children whose parents are deceased, disabled, or retired. See Benefits for Children at www.socialsecurity.gov/pubs/EN-05-10085.pdf for the specific requirements.

2. Social Security can pay benefits to parents.

Most people know that when a worker dies, we can pay benefits to surviving spouses and children. What you may not know is that under certain circumstances, we can pay benefits to a surviving parent. Read our Fact Sheet Parent’s Benefits, available at www.socialsecurity.gov/pubs/EN-05-10036.pdf, for the details.

3. Widows’ and widowers’ payments can continue if remarriage occurs after age 60.

Remarriage ends survivor’s benefits when it occurs before age 60, but benefits can continue for marriages after age 60.

4. If a spouse draws reduced retirement benefits before starting spouse’s benefits (his or her spouse is younger), the spouse will not receive 50 percent of the worker’s benefit amount.

Your full spouse’s benefit could be up to 50 percent of your spouse’s full retirement age amount if you are full retirement age when you take it. If you qualify for your own retirement benefit and a spouse’s benefit, we always pay your own benefit first. (For example, you are eligible for $400 from your own retirement and $150 as a spouse for a total of $550.) The reduction rates for retirement and spouses benefits are different. If your spouse is younger, you cannot receive benefits unless he or she is receiving benefits (except for divorced spouses). If you took your reduced retirement first while waiting for your spouse to reach retirement age, when you add spouse’s benefits later, your own retirement portion remains reduced which causes the total retirement and spouses benefit together to total less than 50 percent of the worker’s amount. You can find out more at www.socialsecurity.gov/OACT/quickcalc/spouse.html.

5. If your spouse’s retirement benefit is higher than your retirement benefit, and he or she chooses to take reduced benefits and dies first, you will never receive more in benefits than the spouse received.

If the deceased worker started receiving retirement benefits before their full retirement age, the maxi-mum survivors benefit is limited to what the worker would receive if they were still alive. See www.socialsecurity.gov/planners/survivors/survivorchartred.html for a chart.

Social Security helps secure your financial future by providing the facts you need to make life’s important decisions.

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