Tips to Save Social SecuritySubmitted By: Mojo Nichols in Finance Tips category
The income profited by social service is given by the Federal government. This security program has been funded by levying a tax on both the employees and the employer. The social security program was created by the Social Security Act of 1935. This act was created to provide benefits to the survivors and their families and to the old people. According to this act, the money would be paid to the person and his dependent family based on his employment records and the person' s total contribution to the government system. Here are a few tips to save social security.
Few years back, the retirement age was limited to 65 and the person could get the social security benefits from the age of 62. But now, the retirement age has been increased to 66. The retirement age would keep on increasing in the coming years. This decision was taken after observing that the average Americans live longer. This criteria sounds interesting but it can be harmful too. The increasing age of retirement can increase the disability claims by older people who cannot work due to their health problems.
Due to increase in the number of disability claims that the Social Security finances, the finances of the disability benefits are higher than the early retirement benefits as per the president' s commission. Apart from all these hurdles, here are the tips to make your retirement life a stable one.
Tips to Save Social Security
Lower the Credit Card Usage
Credit cards are the medium that can easily harm your financial plans and savings. It is important to limit the usage of credit cards in order to save more and get less involved in the debts. Nearly, most of the credit cards have higher interest rates. If by chance you have missed any of the payment, the amount of debt will automatically increase due to the higher interest rates. Even if you do not use the cards, you will have to maintain the on-time payment system of the cards.
Saving for Long
Saving money is necessary for a better future. If you really want a secured and safe future for yourself and your family, then saving money is the best option. The best idea is by opening a savings account and depositing money in it every month. Do not use money from this account and save it for your retirement days. It is better to create a budget that is based on the income and the expenditure and accordingly spend your money.
Planning your Retirement
Set realistic goals for for your retirement period. Planning the retirement as early as possible is necessary rather than planning it a few years before retirement. Start saving according to your lifestyle. Give a thought on how would you like to live your life after retirement and then start your saving process. There are various government programs like 401K that has benefits like tax deductions, deferred tax on savings, and so on. There are some retirement calculators that can help you to plan your retirement.
Investing in Bonds, Stocks, and Shares
It is necessary to invest in stocks, bonds, and shares in order to save for your future. These investments will improve your income and will keep you and your family' s future secured. Stocks are meant for giving higher returns in future with less investments.
The above mentioned are the tips to save social security and get your future secured financially. In today' s world it is really difficult to save money, but due to all the plans and schemes you can easily save your money and get the pension from it for your expenditures after your retirement.
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