Should We Claim Social Security?

Are you looking forward to claiming Social Security benefits?

I’ve been asked if Christians should claim Social Security benefits. This federal program provides retirement and disability income to those who qualify. Workers pay into it through automatic payroll withholding. The self-employed pay Social Security taxes when filing their annual tax returns. Since you, the taxpayer and your employer pay for Social Security, you’re definitely entitled to claim it.

Benefits are calculated by your work history, your 35 highest-earning years, and the age at which you begin receiving benefits. People earning over a certain dollar amount while claiming Social Security can be taxed up to 85% of the benefits. In January of 2024, the average Social Security benefit was $1,90o a month. The maximum amount for someone retiring at full retirement age is over $5,000 a month. However, only the highest-paid workers qualify for maximum benefits. It’s estimated that Social Security replaces less than half of pre-retirement income for average earners. That’s why other forms of retirement saving are essential.

Learning to live on less during your working years enables you to fund an IRA, a 401(k), or additional income sources. Learning to exercise self-control with money early in life will help you manage future income. Think of social security as your deferred compensation, and by all means, claim it and be a good steward of it.

And if you’re struggling with credit card debt, Christian Credit Counselors will help. They can create a debt management plan specifically for you. For more information visit online at crown.org/ccc.