Is Social Security Voluntary?
The falsehood that social security is voluntary stems back from its beginnings. Social security is a program that was created to ensure working Americans have some safety in their retirement years as well as under certain hardships. The social security act has been amended over the years. It has been somewhat modernized.
What Is Social Security?
Social security is a federal social insurance program that covers an umbrella of programs. Social security, TANF, unemployment benefits, disability insurance, medicare, medicaid, SCHIP and SSI. These programs are primarily funded by dedicated payroll taxes called Federal Insurance Contributions Act.
Can I Choose Not To Participate In Social Security?
In general the answer to this is no. If you are working in the United States and have earnings your employer is required to report this to the Federal Government. Taxes paid on social security are mandatory. There are a few exceptions. Most are for people earning less than $1000 a year. There were some programs that were set up prior to 1987 law change that were exceptions as well. Lastly, some religious groups such as Amish or Mennonites are excluded.
Can I Protect Myself?
You can still invest in your future voluntarily. There are a few ways to do this. You can invest in property. You can invest your money in IRA’s, Annuities or the stock market. You can invest in your employers 401K plan. All of these are items will help with your retirement and are separate from your social security.
Social security is an umbrella of programs run by the Federal Government. There has been a lot of controversy over the years about this program. It is still a strong program that is backed by the government. There are people that are skeptical about this program but it is still strong and even though it has been mentioned is not in jeopardy any time soon.
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