Will My Pension Reduce The Amount Of My Social Security Benefit?
The type of work one is involved in will always affect their social security benefit in the future. The work you do enables you to qualify for your social security benefits at a future date when you retire because payments in form of social security taxes are paid to the social security trust fund. But it should be noted also that your work should qualify to be supported by the social security trust fund before you qualify for any future benefits. Different work groups gain benefits from the social security trust fund under different circumstance. Below are some of the major work groups available.
How Different Work Groups Work Equal Their Social Security Benefits In The Future
The Employed Work Group
For the employed, their employer is responsible for paying for their social security taxes. Most employees will deduct this amount from your salary so that they do not go at a loss. Once the amount has been deposited into the social security trust fund, the same amount will be used to pay for your social security benefits once you reach retirement age or become disabled. The social security benefit amount one should receive will largely depend upon their salary.
The Self Employed Group
For this group, they pay their own tax that is referred to as self employment tax. The tax paid will enable the self employed to benefit from retirement benefits, disability benefits and Medicare benefits. Just like for the employed, the benefit amount to be received by the self employed will also depend with how much they used to generate before.
In some countries, the military still do not qualify for social security benefits since they are not allowed to pay taxes to the government. However, this has been revoked and military personnel are allowed to pay for social security taxes that will benefit them once they retire, become disabled or help their survivors.