{"id":779,"date":"2019-02-09T14:54:00","date_gmt":"2019-02-09T14:54:00","guid":{"rendered":"https:\/\/mgfs.net\/?p=779"},"modified":"2021-10-05T20:51:10","modified_gmt":"2021-10-05T20:51:10","slug":"9-facts-about-social-security","status":"publish","type":"post","link":"https:\/\/mgfs.net\/blog\/9-facts-about-social-security\/","title":{"rendered":"9 Facts About Social Security"},"content":{"rendered":"\t\t
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Social Security\u2019s been a fact of retirement life ever since it was established in 1935. We all think we know how it works, but how much do you really know? Here are nine things that might surprise you.<\/p>

Tip:<\/strong>\u00a0How Much? Check your Social Security earnings and see an estimate of your benefits on the website, www.ssa.gov.<\/p>

  1. The Social Security trust fund is huge. At $2.9 trillion at the end of 2017, it exceeds the gross domestic product (GDP) of every economy\u00a0in the world except the nine\u00a0largest: China, the European Union, the United States, India, Japan, Germany, Russia, Indonesia, and Brazil. \u00b9<\/li>
  2. Most workers are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.\u00b2<\/li>
  3. You don\u2019t have to work long to be eligible. If you were born in 1929 or later, you need to work for 10 or more years to be eligible for benefits.\u00b3<\/li>
  4. Benefits are based on an individual\u2019s average earnings during a lifetime of work under the Social Security system. The calculation is based on the 35 highest years of earnings. If an individual has years of low earnings or no earnings, Social Security may count those years to bring the total years to 35.\u2074<\/li>
  5. There haven\u2019t always been cost-of-living adjustments (COLA) in Social Security benefits. Before 1975, increasing benefits required an act of Congress; now increases happen automatically, based on the Consumer Price Index. There was a COLA increase of 2.0% in 2018, but there was only an increase of 0.3% in 2017.\u2075<\/li>
  6. Social Security is a major source of retirement income for 61% of current retirees.\u2076<\/li>
  7. Social Security benefits are subject to federal income taxes \u2014 but it wasn\u2019t always that way. In 1983, Amendments to the Social Security Act made benefits taxable, starting with the 1984 tax year.\u2077<\/li>
  8. Social Security recipients received a single lump-sum payment from 1937 until 1940. One-time payments were considered \u201cpayback\u201d to those people who contributed to the program. Social Security administrators believed these people would not participate long enough to be vested for monthly benefits.\u2078<\/li>
  9. In January 1937, Earnest Ackerman became the first person in the U.S. to receive a Social Security benefit\u2014a lump sum of 17 cents.\u2079<\/li><\/ol>

    Fast Fact:<\/strong>\u00a0How Many? In an average month, 59\u00a0million people age 62 and older receive a retirement benefit from the Social Security Administration.
    Source: Social Security Administration, 2018<\/p>

    1. Social Security Administration, 2018; CIA World Factbook, 2017\u00a0
    2-5, 7-9. Social Security Administration, 2018\u00a0
    6. Employee Benefit Research Institute, 2017<\/p>

    The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest.\u00a0FMG\u00a0Suite\u00a0is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.\u00a0The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.<\/em><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    Social Security\u2019s been a fact of retirement life ever since it was established in 1935. We all think we know how it works, but how much do you really know? Here are nine things that might surprise you. Tip:\u00a0How Much? Check your Social Security earnings and see an estimate of your benefits on the website, […]<\/p>\n","protected":false},"author":2,"featured_media":741,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/posts\/779"}],"collection":[{"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/comments?post=779"}],"version-history":[{"count":0,"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/posts\/779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/media\/741"}],"wp:attachment":[{"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/media?parent=779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/categories?post=779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mgfs.net\/wp-json\/wp\/v2\/tags?post=779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}