Question

whats are some of the ups and downs to social security ? type please

Answer 1

Solution:

Social Security was introduced in 1935 to make sure the country’s elderly would have an income after they finished working. The same system is still in place today, with 64,384 million people receiving social security benefits as of February 2015, according to the Social Security Administration, The system provides income, a huge advantage to those who receive benefits, but it also has some disadvantages.

The main advantage of Social Security is that it gives you some monthly income after you retire. The Social Security Administration reports that 85 cents of each dollar paid into the system goes to retirees, their families, surviving spouses and children whose parents have died. The other 15 cents goes to pay people who are on disability. If you have a disease or condition that may limit your lifespan, you can start collecting Social Security at an earlier age.

Social Security benefits pros and cons.

Pros: If you work during retirement, you’ll earn more over time, which will increase the amount of your Social Security benefits. Also, the longer you delay collecting Social Security, the higher your benefits. So your benefits will be higher if you start collecting Social Security at age 70 than if you started collecting at age 65.

Cons: However, if you do keep working and boost your income above a certain amount, you may be subject to income taxes on your Social Security benefits.

Investments and income.

Pros: Many people worry that they won’t have enough money to last throughout their retirement. Staying in the workforce will allow you to keep contributing to your retirement plan. You may also have a chance to boost the value of your investments over time.

Cons: If you have a traditional IRA, you must take required minimum distributions at age 70½ years. These withdrawals count as income, so this could mean more of your Social Security benefits would be taxed.

Career and lifestyle.

Pros: If you’re passionate about your career, you might not want to stop working. Your job provides meaning in your life and keeps you mentally challenged. It also allows you to stay in touch with people that you’ve known for many years. If you keep working, you don’t have to change your lifestyle or cut spending on items or activities that you enjoy.

Cons: You’ll have less leisure time and flexibility if you keep working full time. That means less time for golf, traveling the world, or pursuing other hobbies.

Additional considerations.

Another benefit of working in retirement is that you’ll continue to get health insurance through your employer. However, keep in mind that part-time employees (working under 30 hours per week) usually don’t get health insurance. And even if you do keep working at your retirement age and get health insurance from an employer, you can sign up for Medicare at age 65.