Benefits of Social Security
Social security is an insurance program that provides protection against recognized conditions, such as disability, poverty, unemployment, and old age among others. Here are some of the benefits you will receive from social security programs.
1. Retirement benefits
If you are currently covered by insurance security for a certain period and you become of age, you will start receiving monthly payments from your social security provider. In certain circumstances, you receive full coverage depending on your particular job. Although you can start receiving payments at the age of 62, you will not enjoy full retirement benefits until you reach the standard age.
2. Tax-free benefits
Most retirees enjoy tax-free benefits upon retirement. These included non-taxable AGI interest along with 50% tax free interest. For instance, if you avail retirement benefits between 61 and full coverage, $1 is deducted in your earnings until they reach the annual limit of $2 every month. However, this limitation only applies to your income and not from bonds or stocks.
3. Disability benefit
Social security is also available to individuals who have disability, which prevent them from nation building. However, social disability guidelines are tough to ensure fair treatment to every person. Persons claiming these benefits must have been suffering from mental or physical disability for not less than one year.
4. Survivor benefits
The survivors are eligible to receive cash benefits if they are related to the deceased employee or worker. The survivors might include children, spouse, parents and grandchildren in special circumstances.
5. Medical benefits
These benefits usually include Medical and hospital insurance expenses. This coverage automatically starts when you reach 62 years of age. It covers hospital expenses, doctor bills, outpatient treatment, and prescriptions drugs among other related expenses.
There main drawback associated with social security is small monthly payments, especially during early retirement.