5 Things That You May Not Know About Social Security Benefits

If you didn't know already, now you will. Social Security turned 80 years old recently. Many people depend on these benefits, but there are things about it that they may not know.  If you're working, then you've probably watched your money go into Social Security. Most of us may talk about Social Security benefits, but don't think much about it in our younger years.

Here are 5 facts about Social Security that are not popularly known amongst most people paying into it.

1. Who's Qualified? - If you've worked 10, or more, years then you are eligible for Social Security benefits. However, according to the Social Security Administration, one must have 40 credits and must earn a minimum of $1200 per quarter. Railroad workers have their own benefit and federal workers, before 1984, may not be eligible for the benefit either.
2. How Is It Calculated? - The Social Security Administration website states that wages are calculated this way. The primary insurance amount (PIA) which is the amount that you should receive when you reach the full age of retirement. The PIA is based on the AIME, or Average Indexed Monthly Earnings, which is applied to an inflation adjusted formula.
3. Marriage Earners - You may have a spouse that earned less than you did. If that is the case, then they can receive spousal benefits instead of their own payout based on their work history.
4. Is It Broke? - According to the Social Security Board of Trustees, the trust funds will be unable to pay out because of fund depletion by 2033.
5. Where Is Your Money? - It doesn't just sit in the fund waiting for you to retire. Theoretically, they are held in a government trust fund. After the current beneficiaries are paid, then excess money are used to buy bonds from the U.S. Treasury.