Understand how they work retirements In the country to which you want to emigrate, it will be the key to being able to start a savings plan and ensure a future where the worker can enjoy the fruits of their work, without having to worry about anything.
In United States, the retirement system has its peculiarities, and knowing them will benefit you as a contributor and future beneficiary of the program.
What are retirees like in the United States?
As in most countries, in the United States, retirement is a right that is accessed after a certain number of years of work and contributions to the system.
The American retirement system is comprised of several types of income, including those derived from public and private contributions. To be able to apply for the retirement benefit, workers must have between 62 and 70 years old.
Along with the economic income from retirement, citizens must also choose a health coverage plan. Under the U.S. system, when they turn 65, retirees must enroll in one of the programs of medicare, taking into account that late registration is a reason for a fine.
The Role of Social Security in Retirement
El Social Security It is a system that consists of a trust fund that is financed through the payment of Social Security taxes. This system also provides for the payment of disability pensions, pensions for a family member of a deceased and supplementary income for those with limited resources.
In general, retirees and retirees they get 40% of the income that they received prior to retirement.
But in addition, workers must contribute to other retirement or private savings tools, in order to receive a higher income that allows them to maintain their standard of living. This is why there is a lot of talk about planning for retirement, such as the Retirement Plan or Individual Retirement Account (IRA).
Sources of income for retirees
According to some research centers, such as the Pew Research Center, at least 20% of Americans over 65 decide to continue working. This is why they can keep their income even after reaching retirement age.
Many people, however, also consider what is known as semi-retirement. This option allows them to remain active but not meet the workload of an ordinary employee.
On the other hand, we have also named the Individual Retirement Account (IRA). There are two types of IRAs: the account traditional, which will have tax deductions and the withdrawal will be subject to taxes, and the account Roth, whose withdrawals are tax-free.
Finally, you can also access retirement plans through the employer. These can be of three types:
- defined benefit plan,
- defined contribution plan,
- hybrid plans.
Social Security and Social Security Administration (SSA)
La Social Security Administration (SSA) It is the entity that manages the national social security program and gives an identification number to each of the people who enter the program, whether through retirement, disability or other benefits.
Along with the number, the SSA also provides a card that will serve as an identification card for the beneficiary of the program.
How does Social Security work?
Once the 62 years old, the worker can apply for their social security through the website or through the offices of the Social Security Administration (SSA). However, if you wait until you reach the retirement age of 65, you could earn an even higher income.
To be able to apply for this benefit, a person must work for at least 10 years. The system works through loans that accrue as you work and pay Social Security taxes. For each year, 4 credits are accumulated, with a minimum of 40 credits (10 years).
Financial planning tools
In order to plan for personal finances and future retirement, the United States government provides a tool called Worksheet. In these sheets, the person can capture all the information about their income, expenses, savings objectives, etc.
With this information, the person can start planning their savings, choosing the retirement plan or insurance that works best for them.
Retirement Income Calculation
To begin to Calculate retirement income, some factors must be taken into account, such as the age at which you begin to receive these benefits or the gains you received throughout your life.
The United States government offers a variety of Social Security benefit or credit calculators, which take into account people's income, credits generated over years of work, income limits, and others.
