Is it a mistake to rely on Social Security? According to HowStuffWorks, early retirees — or claimants receiving benefits at age 62 — take a 20% cut in Social Security funding and benefits. Moreover, Social Security is expected to climb only 1.5% this year; this is among the programs smallest growths ever, reports CNN Money. With these figures in mind, it is perfectly reasonable to question the practicality and sustainability of the program. What are some basics about Social Security, and how they changing?
Understanding Social Security
Approximately 60.4 million Americans receive Social Security benefits. The Social Security Association (SSA) reports that retirees are the most likely beneficiaries, making up 69% of all U.S. men and women receiving financial support from Social Security. Social Security Disability is also fairly common, accounting for up to 17% of beneficiaries. Finally, 14% of Social Security funding goes to military trauma (or military sexual trauma) survivors and veterans.
Retirement-related Social Security claims have three basic requirements: applicants must be at least 18 years old, a permanent resident of a U.S. state or territory, and have a minimum of 10 years work experience (or 40 Social Security credits). To qualify for Social Security Disability, workers’ conditions or injuries must fall under the current list of Compassionate Allowances — including ailments such as brain injuries, stroke, cancer, and early-onset Alzheimer’s — or render them physically or mentally unable to work for a full calendar year.
Current Social Security benefits should only make up 42% of livable income, according to HowStuffWorks. The remainder of sustainable income should come from retirement funds and savings. However, this is rarely the case. According to the American Association of Retired Persons (AARP), 50% of married couples rely on benefits as their sole source of income, and an alarming 46% of single beneficiaries depend on the program for 90% of their income! The increasing reliance on Social Security results in funding being stretched incredibly thin. In fact, only 29.4% of initial applicants get accepted into the program. Only 10% are eligible to reapply. It is pretty clear, then, that the application process is becoming increasingly difficult. Ask Social Security attorneys for assistance to make a strong case.
Social Security continues to pay out benefits to a growing number of American retirees, disabled workers, and veterans. Get the funds and benefits due to you by teaming up with knowledgeable Social Security attorneys.