Ten Facts About Social Security As An Income Supplement By M. Salvacion At Isnare.com Ezine Articles

Under federal law on social security system, the poor, the unemployed and the disabled are provided assistance through the Supplemental Security Income (SSI). This benefit is funded by general tax revenues and given as cash to eligible individuals to help them meet their basic needs of food, shelter and clothing.

Eligibility

In order to be eligible to receive SSI benefits, an individual must prove the following:

• That he is age 65 or older, blind, or disabled

• That he legally resides in one of the 50 states, the District of Columbia, Northern Mariana Islands or is the child of military parents assigned to permanent duty outside of the US

• He is a student (certain restrictions apply) temporarily abroad.

• That he has income and resources within certain limits

• The individual must also apply for the benefits.

Social security benefits are more than an insurance plan. It provides and supplements income for retirees, the disabled and the unemployed. Here are ten important points to remember about the social security income benefits as a good investment plan:

1. Social security acts as protection and insurance – Social security provides insurance coverage to more than 153 million workers and their families and benefits to close to 46 million individuals of all ages, including children of the deceased, disabled and retired workers.

2. A retirement benefit is guaranteed for life and adjusted with inflation changes. – Social security benefits continue to be paid throughout the lifetime of retirees and are designed to make adjustments as prices change.

3. Benefits are available for another 39 years – Social security benefits are available for the next 39 years that will come from the taxes paid by current workers. Seventy-three percent of benefits will still be available even after 2041.

4. Protection and security against death and disability – Reforms proposal in the social security benefits include calculations for death and disability benefits.

5. Provides progressive security for workers – The social security provides progressive benefits for low-income workers. A benefit formula has been designed to favor those who have earned little income throughout their careers.

6. Principal source of income for older Americans – The social security benefits is a source of income for more than 90 percent of Americans aged 65 and older. The pension income of older people makes up about one-third of beneficiaries who rely solely on pension as their source of income.

7. Beneficial to Women – The social security income benefits provide more benefits to women than initially planned. Close to 24 million women, comprising 53 percent of beneficiaries currently receive social security benefits.

8. A source of critical income for minorities – Social security benefits provide a primary source of income for minorities such as African Americans and Hispanics who are mostly low earners. These lower-wage workers and their families receive higher benefits in return.

9. Trust fund guarantees that social security benefits earn from investment – Trust fund assets of the social security agency are invested in the Treasury securities to earn market-based returns. In 2001, the trust fund assets grew to 6.7 percent and continue to grow until 2017. By 2010, the assets will total nearly $3.3 trillion. In this way, all social security tax dollars are reserved solely to pay benefits and administer the agency’s program.

10. Foundation of worker’s retirement security – The social security was intended to provide important basic protection for workers and their families during retirement. Savings and pension are the main components of the retirement benefits program.

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