Social Security

Background on Social Security:

* Social Security is used to identify the old-age, survivors, and disability program provided by the government (over 95 percent of US workers are covered).

* Eligibility- 2011- a worker received one credit for each $1,120 in annual earnings on which SS taxes were paid.

* No more than four credits may be earned in any one year calendar.

* Wage bases are adjusted annually for changes in the national level of wages.

* Credits are the basis for establishing an insured status.

* 3 types of insured statuses

* Fully insured

* Currently insured

* Disability insured

* 3 Types of benefits

* Retirement Benefits

* Survivor Benefits

* Disability Benefits

* Retirement benefits

* early as 62

* Full retirement age for workers born in 1937 or before- 65

* Gradually increases throughout the years- 1960 or later 67

You can delay applying for benefits up until age 70. Based on a monthly percentage increase. In 1939 the maximum percentage increase was 32 1/3 percentage. While today would only be 24 percent.

A survey from yahoofinance among Baby Boomers says that 61% of respondents fear outliving their retirement more than death. Which brings the question of waiting or cashing in on retirement.

It all depends on your situation. You could make a significant amount more by waiting.

EXAMPLE: (Social Security Administration)

Keeping in mind this is for current retirees.`z

Retire at age 62 with average annual income of $75,000. Earn about $1,628 a month.

Retire at age 70 you earn $2,939.

Say you live to age 85. You would have earn roughly $75,000 more.

A survey from yahoofinance among Baby Boomers says that 61% of respondents fear outliving their retirement more than death. Pretty much says those people would rather die than outlive their retirement. Which brings the question of waiting or cashing in on retirement.

So, when...