Know About Different Types Of Retirement Benefits

By: Joe Mathews

You might have heard about agencies offering financial planning services for your retirement days. Surprisingly, there is a wide variety of retirement benefits options for you to consider.

The USA government has made it possible for workers to make income even after their retirement through its Social Security benefits program. However, the amount of payment is decided on the total period of their employment and social security benefits taxes they have paid.

Different Sources And Types Of Retirement Benefits Or Plans

  • Social security benefits.

  • Disability benefits.

  • Veterans benefits.

  • Private savings.

Various types of retirement benefits - A Quick Overview

Social Security Retirement Benefits: This option allows substantial profits for more number of workers as it offers a wide array of exclusive retirement income options. It has been providing social security contributors (workers) with significant social benefits. Apart from ensuring benefits to its contributors, it backs several other non-members and charitable programs.

The most recent statistic has shown that the membership figure of U.S social security program has gone up to 96% or even more.

The social security plan makes sure that retirees receive payments for lifetime in a check every month.

The amount of income benefits get adjusted every year depending on the average indexed monthly earnings of retirees who meet the following criteria:

  • Have attained the normal retirement age of 62 years or more.

  • Have applied for the retirement benefits.

  • Have received substantial earnings through government or self-employment for at least 10 years or have got 40 credits of work coverage.

It is noteworthy that if you want to take advantage of such social security benefit, then you will have to formally apply for it. You wonít be able to get such retirement benefits if you have not applied for it.

The social security program also takes into account the number of years you have paid social security taxes for estimating the exact amount you will receive every month. The general assumption is that, the late you file your retirement benefits, the more you receive in retirement interest and pension.

Though full retirement age is recently declared to be 65 but people can decide to retire from the age of 62. Some rare cases are there when early retirement can be considered.

Disability Benefits: Due to traumatic or catastrophic accidents, some people become physically challenged and canít make income. There are few people who suffer from bad health conditions and canít continue work to support themselves.

If any of these above things has happened to you and medical examinations have confirmed that, you are going through the same condition for about 12 months, then you can apply for disability benefits.

When you apply for social security disability benefits, you have chances to receive full retirement benefits just like retirees who have attained the full retirement age of 65. However, you will have to furnish a medical certificate in support of your condition from any Social security accredited hospital.

Veterans benefits: The federal law allows some government dividends to veterans and their dependents for protection. They include some specially designed benefit programs such as disability compensation, veteranís pension programs, education programs and low cost health care.

Private savings: When used along with retirement plans it can prove to be a reliable option for workers who want to maximize their retirement incomes and other social benefits, like healthcare plans once they retire.

Such type of retirement benefit choice may be costly and need more investment for long time.

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Joe Mathews has a got a fair idea about different sources and options of retirement benefits. He has discussed a few tips on how to get significant retirement income in a guaranteed manner.

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