This week in class we talked about Social Security. Social security was first enacted in 1935 by President Roosevelt. Social Security is the largest government program in the world. Social Security provides benefits for: retirement, disability, family benefits, survivors' benefits, medicare, and supplemental benefits. Social Security is the major source of income for most of the elderly with 39% of the elderly only receiving Social Security income. Social Security is taxed at 7.65%. This includes 6.2% for OASDI and 1.45% for Medicare. In order to receive Social Security benefits a person must have accumulated 40 quarters. A quarter is equal to $1,160 earned dollars. The maximum quarters that can be earned in a year is four so it will take ten years of employment to qualify for Social Security. The full retirement age for Social Security is currently age 67. You may retire early, at age 62, but there will be a permanent reduction in your benefit for each year you chose to retire before full retirement age. If you choose to retire later, you can increase your benefit up to 8% each year.
Medicare began in 1965. Medicare benefits are for people who are at least 65, disable individuals, or those with permanent kidney failure. Medicare has 3 parts: Part A, Part B, Part D. Part A covers hospital and skilled nursing care. Part B covers medical insurance. Part D covers prescription drugs. You must meet a deductible and pay a premium for each of these.
Medicare began in 1965. Medicare benefits are for people who are at least 65, disable individuals, or those with permanent kidney failure. Medicare has 3 parts: Part A, Part B, Part D. Part A covers hospital and skilled nursing care. Part B covers medical insurance. Part D covers prescription drugs. You must meet a deductible and pay a premium for each of these.