Social Security benefits are something a large portion of people can look forward to receiving when they retire. Here before you is a breakdown of how the money for those benefits is accumulated to later be given back to you.
I am sure that you have seen a subcategory entitled FICA on your paycheck stub. The acronym that you have been witnessing stands for the Federal Insurance Contributions Act. The Act requires your employer to deduct a select the amount of money from your check that can later help you.
12.4 percent of the monies deducted within the FICA category on your check are social security taxes. The Social Security taxes deducted from your check are placed into a trust fund. The money from the trust fund is used by the government to support retirement and disability programs. Therefore, it is from this fund that you later will receive your Social Security benefits after you retire.
Social Security Administration
The Social Security Administration has a website that will help you to understand the qualifications to receive Social Security benefits. While there, you can also find a Social Security benefits estimator calculator. By plugging in your attributes concerning who you are to estimate how much you will receive in Social Security benefits.