My employer takes alot of money out of my paycheck for FICA!
What happens to that money when I reach the retirement age? Can I get it ALL back at age 68? Or do I have to qualify for my own money?
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Most goes directly to Gov’t for current Social Security recipients.
Small portion is now going into a sort of “trust” for future Social Security crisis victims.
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you need to work for nine quarters to qualify for social security.yes the money taken out of your paycheck is used to pay people who have retired.and yes the amount you pay is credited to your account for when you retire.most if not all the money you put in will be paid back to you in about three years.
unless we don’t allow the dolts in congress to fix it.
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You do not get it all back at the same time. You get a certain amount each month. Typically, for each dollar that you earn, you pay $0.0765 (total of FICA and medicare) and receive $0.01 per year (so it takes 7.65 years to make back what you paid in). For example, if you make $10,000 per year for 30 years, for a total of $300,000, then you pay in $765 per year and receive $3,000 per year when you retire. I have not included inflation adjustments (cost of living increases) in any of these figures.
it is placed into a general fund account, it is not earmarked as “your” money.
As one of those Old People.
Stephen is right about the numbers. The money supposedly goes into a trust fund and I am receiving the monies I paid in. In actuality Congress has spent the money as soon as it gets it hands and it. Then it allocates money for payments.
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Your Social Security account is credited with your earnings. When you reach retirement age your lifetime earnings will be adjusted to reflect average reported wages (it is sort of like a cost of living adjustment but not quite) and you will be given a retirement benefit based on your average earnings over the highest 35 years.
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It’s not stashed away someplace in a bank account with your name on it, if that’s what you are asking. The money paid in is used for current government obligations. But you are buying the right to payments when you reach retirement age, or are disabled. The amount you get depends on how much you paid in – but no, you don’t just get it all back in a lump sum.
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Thank you for contribution. In a few more years I can start collecting. I do appreciate it because I paid for many years myself for others before me. Please keep working. Thank-You again.