How Social Security Works
In This Chapter
- Uncovering the secrets behind Social Security
- Where does all the money go?
- Who pays into the fund and who doesn’t
- A brief overview of qualifying for benefits
The answer to how Social Security works is simple: you and I, along with our employers, pay taxes under the Federal Insurance Contributions Act (FICA) that go into a trust fund that pays Social Security benefits.
Sounds pretty simple, right? In reality, to finance this vast program, the Social Security Administration (SSA) relies on a number of complex formulas and regulations that would give a nuclear physicist a headache.
Is It Really ...