For most people, Social security St. Louis MO is a big part of retirement planning; almost 96% of the American workforce is covered. However, the current state of the economy means that many people’s SS benefits are in question. In this article, we will describe the benefit process, and explain how your future benefits may be affected by funding shortfalls.
The Social Security Process
Workers pay into the system via the Social Security tax, and deductions can be found by reviewing pay stubs and direct deposits. Once you can no longer work, you can get the benefits you’ve earned. Your benefit amount depends on three factors: the length of your working life, your earnings at qualifying jobs, and your retirement age. The longer your career, and the more you earn, the more Social security in St. Louis MO benefits you’ll get. SS is not automatic-;you need to apply, and you must have a certain number of credits before application. Spouses, dependents and survivors can also receive your benefits.
How Benefits Work
As you pay into the system over your working life, you accrue credits to be used toward your benefits. The number you need before applying for SS depends on your birth date; for instance, those born in 1929 and after need at least 40 credits (roughly equivalent to ten years’ work). You cannot get benefits if you quit working before you accrue 40 credits, but you won’t lose credits you’ve already accumulated.
The Future of the Social Security System
Many believe that the Social Security benefit system is in trouble, and it is-;to an extent. During the next ten years, the worker to beneficiary ratio will decline significantly, as more ‘baby boomers’ exit the work force. The problem grows when you account for longer lifespans, declining birth rates, and increased costs of living. In economic terms, the situation isn’t sustainable, and without a cash infusion, the trust fund will run out in 2037.
Applying for Benefits
If you are about to retire, you don’t have anything to worry about as far as your benefits are concerned. The problems we discussed above aren’t going to affect those who intend to retire within the next ten years, and the SSA has no plans to cut benefit levels.
