How Social Security Works
Over the course of your work life, you and your employer will be contributing to the social security system based on your wages. Presently, 6.2 percent is withheld from your paycheck and an equal amount is matched by your employer. Higher wage earners have a cap on how much of their pay is subject to social security withholdings. In 2006 that figure was $94,200. How much money you will be eligible to receive will be based on:
How old you are when you begin to receive benefits
How long you were in the work force
What your total accumulated earnings were
The longer you work, the higher your social security payout will be. It is possible to begin receiving social security payments as early as age sixty-two; however, if you can wait a few more years your monthly payment will increase.
The vast majority of jobs qualify for social security. Over the course of your working years you need to accumulate a minimum of forty social security credits (credits are based on minimum earnings each year) to be eligible to receive benefits later. Make sure you have completed proper paperwork and your employer has your correct social security number.
Your spouse or dependents can receive your benefits in monthly checks if you become disabled, or upon your death.
