This past week we learned about retirement and Social Security. As we learned earlier in the course, success in getting to retirement is how much you save, especially in the early years. To get the full benefits of Social Security, you have to be at the FRA which changes due to life expectancy and other factors. You start paying for Social Security as soon as you get income. To qualify for Social Security you have to have 40 credits, these are sometimes called quarters. Right now the age to get full benefits is 65 but that age is increasing to 67, a person could take reduced benefits at age 62, however once you take reduced benefits you are locked in at that forever.
Key terms and definitions:
Key terms and definitions:
- ARISA: allows for employers to sponsor retirement plans
- AIME: Average Index Monthly Earnings
- PIA: Primary Insurance Amount
- FRA: Full-benefit Retirement Age
- Contributory: Both you and employer pay towards retirement
- Noncontributory: Only the employer pays towards retirement