Concept explainers
To discuss: Ways social security can fit into retirement planning and individual qualifications for social security benefits and discuss the time, these benefits will be received.
Explanation of Solution
Social security is a federal program that taxes individuals while they are working and provides them earnings at some point of retirement. While social security is a source of income during retirement, it is commonly not sufficient to live comfortable life.
However it is an essential part of retirement planning. Individuals ought to earn 40 credit points to qualify for social security benefits. A person who contributes to social security earns one credit for each $1,220 income every year (2015 tax year), with a restriction of four credit per year.
Benefits can be received when a person retire or he become disables, or if he is the survivor while the breadwinner of the family dies.
Want to see more full solutions like this?
Chapter 19 Solutions
Personal Finance
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education