|
|
Social Security and Medicare Overview
Home » Retirement » Social Security and Medicare » Social Security and Medicare OverviewIf you are planning on retiring soon, Social Security and Medicare are two programs you need to know about and do your homework so you understand your benefits. Social Security was signed into law by Franklin Delano Roosevelt in 1935. This program provides three main benefits to the retiree including retirement income, disability and death benefits to survivors. Social Security is funded through regular payroll deduction as a tax imposed on employees and those who are self-employed. Reduced benefits can be received at age 62. Full benefits begin around 65 depending on your date of birth. In 1999, the Social Security Administration begin mailing workers who are 25 a document entitled Your Social Security Statement. This statement is mailed about three months before your birthday. It provides information about earnings and the resulting Social Security/Medicare taxes paid by you and your employer. The statement is also available on request from the Social Security Administration. Social Security was controversial in 1935 and is still controversial today. Medicare was added in 1965 by the Social Security Act of 1965. In 1970, $31.9 billion was paid out in cash benefits. In 2004, cash benefits total $429 billion with 47.5 million beneficiaries. Everyone has a Social Security number which is the national identification number in the United States. This number has become a personal identifier. To protect the confidential nature of our business the Privacy Act of 1974 was passed to protect and limit the use of your Social Security number.
Medicare is a health insurance program benefiting people 65 and over and younger people who have disabilities. This program was passed in 1965 by President Lyndon B. Johnson. It is administered by the United States government. This program is partially funded by payroll taxes imposed by the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act of 1954. In 2003, Medicare provided health care coverage for 41 million Americans. By 2031, 77 million people will require Medicare benefits. It is a program benefiting those who are 65 or older, younger people with disabilities and people of all ages who have End-Stage Renal Disease. Medicare has several parts that are broken down into Part A, B, C and D.
Related Social Security and Medicare Articles