Personal Retirement

What is Social Security

What is Social Security

 

 

Social Security is a simple concept. As you work, you pay taxes to the government. When you retire or become disabled, you receive monthly benefits based on your reported earnings. In the event of your unexpected death, your spouse and children will be cared for. You should work with the Social Security Administration and your financial advisor to determine how to integrate Social Security into your overall retirement plan.

What is the purpose of social security?

Social Security was originally intended only to supplement other sources of income in retirement.

However, Social Security is now a main source of income for many Americans. According to the Social Security Administration (SSA), on average today’s retirees derive 33% of their income from Social Security benefits.1 The remaining sources include employment earnings (32%), pensions and annuities (21%), income from assets (10%) and other (4%).1

What is the Purpose of Social Security

Individuals receiving Social Security as their primary or sole source of income are usually living below, along or just above the national poverty level.

Income Sources

For a more comfortable retirement, individuals are encouraged to plan, save and invest with a financial advisor, so social security is only a supplement to their total income.

This webpage is provided for informational purposes only and is not provided as a sales or advertising communication nor does it constitute tax, legal or investment advice or a recommendation for any particular investment product or strategy for any particular investor. This webpage does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. This material (or any portion thereof) may not be copied or distributed without The Bank of New York Mellon and all its affiliates’ prior written approval. Statements are current as of the date of the material only.

1 “Fast Facts & Figures About Social Security, 2017,” Social Security Administration.

2 “Income of the Population 55 or Older, 2014,” Social Security Administration.

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