Joseph Ferguson, a Social Security Affairs specialist, came to give our class an overview of the Social Security system. He provided us with many handouts to explain the social security system. He began by speaking on the history of Social Security, and then went on to speak about the basic rules and regulations that are in place now.
The Social Security system was put in place by Franklin D. Roosevelt to supplement for low to no income wage earners. Social security helps retirees over 65 by giving them an approximated 40% of their highest 35-year earnings averaged. The program is funded through a 7.65% tax on employees and employers. To qualify to receive Social Security benefits, you must earn 40 credits. One credit equals $1,130 earned dollars. Unfortunately the more you work the less you are rewarded with. This system was initially designed for needs based people. The social security system also helps survivors that are too young to work or are disabled. Social security has also set in place the Medicare system, needs based social security, and Medicare part D, which is to help low income wage earners with prescriptions.
If I had to describe the social security system to a client I would first tell them not to base their retirement nest egg on Social Security, mainly because of its uncertainty but also because it will not provide my clients with enough income in retirement to live comfortably. Next I will let my clients know that they must earn their 40 credits before they will be able to receive Social Security. It would also be wise to advise them that if they retire before 65 they will receive a smaller benefit package.
Mr. Ferguson did his best to inform our class about the social security system. But as I was trying to write this reflection I found it very difficult and had to refer back for much of the information. There was not enough time allotted for him to speak. I suggest that if he were brought back that he speak over more than one class period to give a better overview of the Social Security System. I also wish he would have spoken about the future of the Social Security System because it is not looking very promising for my generation.
The Social Security system was put in place by Franklin D. Roosevelt to supplement for low to no income wage earners. Social security helps retirees over 65 by giving them an approximated 40% of their highest 35-year earnings averaged. The program is funded through a 7.65% tax on employees and employers. To qualify to receive Social Security benefits, you must earn 40 credits. One credit equals $1,130 earned dollars. Unfortunately the more you work the less you are rewarded with. This system was initially designed for needs based people. The social security system also helps survivors that are too young to work or are disabled. Social security has also set in place the Medicare system, needs based social security, and Medicare part D, which is to help low income wage earners with prescriptions.
If I had to describe the social security system to a client I would first tell them not to base their retirement nest egg on Social Security, mainly because of its uncertainty but also because it will not provide my clients with enough income in retirement to live comfortably. Next I will let my clients know that they must earn their 40 credits before they will be able to receive Social Security. It would also be wise to advise them that if they retire before 65 they will receive a smaller benefit package.
Mr. Ferguson did his best to inform our class about the social security system. But as I was trying to write this reflection I found it very difficult and had to refer back for much of the information. There was not enough time allotted for him to speak. I suggest that if he were brought back that he speak over more than one class period to give a better overview of the Social Security System. I also wish he would have spoken about the future of the Social Security System because it is not looking very promising for my generation.