The post's claim that Social Security Insurance totals 15% of a person's income before taxes may be the result of conflating Social Security taxes with Federal Insurance Contributions Act taxes.įICA taxes fund a number of programs, including Social Security's old-age, survivors and disability insurance program and the Medicare hospital insurance program.Įmployees who work for an employer and make less than $200,000 per year would pay a total of 7.65% of their taxable income for both programs, with 6.2% going toward Social Security. When they choose to start receiving benefits.The amount of retirement benefits a person receives depends on several factors: More: 16 states offer tax-free weekends to help with school shopping. Social Security retirement benefits are meant to replace a portion of preretirement income based on a person's highest 35 years of earnings. The remaining 15 cents pays benefits to people with disabilities and their families.īecause Social Security is not solely a retirement program, age doesn't necessarily determine eligibility in all circumstances, and benefits can be paid to children and other dependents. Social Security pays more benefits to children than any other government program, according to the Social Security Administration. In 2020, 85 cents of every dollar of Social Security taxes pays benefits for retired workers and their families and survivor benefits to the spouses and children of workers who have died, according to the Social Security Administration.
![social security office social security office](https://chiangmaione.com/wp-content/uploads/2020/06/Social-Security-Office.jpg)
More: Social Security tips: 10 ways to get more money in benefits Some workers may ultimately receive more in benefits than they paid in Social Security taxes, and some may receive less. Workers pay Social Security taxes on their income, and that money is put into a trust fund used to pay individuals who are receiving Social Security benefits. The program also provides income to people who cannot work because of a disability, and pays a worker's dependents in the case of their death. The Social Security program uses federal income taxes to provide income to people when they retire.