• to provide old-age benefits for retired workers to alleviate financial insecurity
• to provide benefits for surviving dependents of workers so that they continue to receive an income
• to provide for the disability of a worker and
• for Medicare, health insurance for the retired.

7.65% of your pay should go to Social Security <from your FICA tax>.

Your employer is required also to match your 7.65%.

Social Security is not a plan for living in luxury or even middle-class comfort in your old age. It is designed to provide for only the necessities of life: food, shelter and clothing -- not sumptuous in quality or quantity. Social Security should not be your only plan for providing for retirement income.

In order to qualify for receiving the old-age benefits, you must have worked for approximately ten years, though the SSA <Social Security Administration> figures this on quarters worked and takes into account the amount earned, so you should ask for an assessment of benefits you will receive directly from the SSA. The age at which you become eligible to receive benefits has recently gone up. Those born prior to 1938 may receive benefits at age 65. If your date of birth is after 1960, you must be 67. For those born between '38 and '59, the benefits will be paid around age 66. The amount of your benefit is figured out based upon your average income while you worked. This amount is adjusted to increase according to the current cost of living. Details, again, should be obtained from the SSA. These benefits are guaranteed by the U.S. government.

If you are the spouse of a worker, you may collect 50% of your spouse's benefits. If you worked and paid into Social Security, you can choose to receive your own full benefits, if that amount is greater, or you can continue to receive your spouse's.

If you are receiving an income which is undeclared by you or your employer, it is not figured into your eligible income from Social Security at the time of your retirement. You and your employer should be paying the tax in order for you to be eligible.

There are many laws and regulations regarding Social Security. For example, if one works keeping house and is under age 18, that person is exempt from paying Social Security tax unless it is the main occupation. If one is over 18, working as a housekeeper but earns less than $1000 per year, that person is also exempt from paying Social Security tax. It is best to check with the SSA to be certain what you are doing is correct <and legal>, so that you can receive the benefits to which you are entitled once you become eligible. You should also get information on the other benefits provided by Social Security for financial dependents, disabled workers and Medicare.

For more information, visit the Social Security Administration.

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