Social Security experts are warning future retirees about their expectations for benefit amounts at the age of retirement. Those working today are going to continue paying higher Social Security taxes but receive less benefits when they finally reach retirement age. These benefit estimates are based on the life expectancy of today’s workers. At this time, the Social Security Administration expects female workers to live on average to the age of 85 and males to live to be around 82.
There are also other factors that affect how much you receive at retirement including spousal and child benefits – both of which are paid out to non-wage earners. Disabled individuals also pull from the pool of funds. The funds are generated by a 12.4 percent tax on wages earned. Employers pay half of the amount and workers pay the other half. Those who are self-employed pay the full percentage.
This is a long way from the original 2 percent tax on wages in 1937 when Social Security first instituted taxes on wages. Right now, there is an estimated 56 million people collecting benefits from Social Security. It is predicted by 2035, more than 95 million people will be collecting. Social Security is responsible for proving older Americans with the majority of their monthly income.
For workers who are set to retire in years down the road, there is certainly a concern about what will be left for them. Younger workers have been focusing more on beefing up their own personal retirement accounts to ensure they have enough money to make it through retirement. Many feel Social Security no longer holds the value it once did. Younger workers are being encouraged to start building their retirement portfolios as soon as possible so it will take less money to save more over longer periods of time. Those who have not been faithfully contributing to retirement accounts and have less time to go until retirement need to do the math and start putting more of an emphasis on saving.
If you need help filing a claim for Social Security disability benefits, contact our office today toll free at 888-799-3918 or through our online contact form. If you have already been denied benefits, we can help!