Are you unsure where Social Security funds come from?
The majority of Social Security dollars come from matching payroll taxes, which are paid by employers and also individuals who are self-employed. Additional dollars stem from interest earned by trust funds and from income tax paid by about one third of beneficiaries on their Social Security benefits.
Today, most payroll taxes collected from workers are used to pay people who are presently recipients of Social Security. Back in 2009, the both Old-Age and Survivors Insurance and Disability Insurance Trust Funds collected around $807.5 billion in revenue. Of the money collected, 82.6% was derived from payroll taxes and 2.7% came from income taxes on Social Security benefits.
To learn more about how Social Security funds are accumulated, read “Fast Facts & Figures About Social Security”: www.socialsecurity.gov/policy/docs/chartbooks/fast_facts/2010/.
Two-Thirds of Baby Boomers Will Rely on Social Security
Even though there have been warnings issued by financial planners, even relatives and the media; two-thirds of Baby Boomers are “very” or “extremely” likely to rely on social security for their retirement.
A poll conducted by the Associated Press and LifeGoesStrong.com, 44 percent of Americans between 45 and 65 do not feel that they will have the resources to live comfortably when they retire. Similar results were found in a study conducted by the Employee Benefit Research Institute, showing that Americans are more concerned about their retirement plans than they have been in two decades.
Several issues are to blame for this increased retirement worry: many lost their money in retirement plans, real estate, or personal investments, while others blame the poor economy in general. As a result, more adults in this age group have been forced to delay retirement to build their nest egg.
If you aren’t sure about how social security will affect your circumstances, contact us to discuss your concerns with a Raleigh personal injury lawyer.