Social Security is a lifeline for many retirees, especially the lower-income group, and its reliance increases with age. Prudent financial management is crucial to avoid such dependency.
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Social Security, your wages and FICA
Social Security benefits are determined by your 35 years of earnings, not by the taxes you paid. These benefits are paid for life and may extend to a survivor. The SSA calculates your benefits using your highest 35-year earnings and adjusts them for wage growth. Millions of people receive SS benefits as dependents or spouses, and the system includes provisions for divorced spouses and children.
When money isn’t money
Imagine if those dollars were their health insurance deductible. Are these the folks struggling with rent, gas prices or at the grocery store?
FICA and the Social Security Act are governed by separate laws
Which is why what you pay in FICA taxes does not determine the lifetime benefits you receive. FICA — The Tax Law Federal Insurance Contributions
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