Social Security By Norm Merz, CLU, ChFC It's not something parents like to think about, but determining what assets you have available in the event of an untimely death, disability or retirement is important for your family. Social Security is an earned right, paid for by contributions withheld from reported income in the work force. Benefits are based on earnings and years paid in. Each worker contributes 7.65 percent of income to Social Security on the first $72,600, which is matched by an Employer. The maximum contribution in 1999 is $4,501.20 (or $9,002.40 if self-employed). What do you know about Social Security? Social Security is a benefit available at retirement, disability or death of the breadwinner. Benefits are determined based on the number of quarters (three-month period) a worker has paid into Social Security with lower and upper limits. Additionally, the age at retirement determines the amount of benefits eligible. A surviving spouse is entitled to monthly payments provided one or more children are under age 18. Once the youngest child is 18 or older, no Social Security benefits are available until the surviving spouse reaches age 60. The period between the youngest child reaching age 18 and the surviving spouse reaching age 60 is often referred to as "the blackout period." Additionally, when eligible for Social Security benefits, a survivor may receive reduced benefits based on income earned by the survivor. Disability benefits are determined when a disabled individual qualifies for total disability. Disability eligibility begins one year after being eligible for disability. An idividual must apply for disability consideration. Retirement benefits are calculated based on the age of the retiree. Persons born after 1937 will not be eligible to retire at age 65 with full benefits. Normal retirement age increases gradually until it reaches 67 for people born in or after 1960. For more information, check out Social Security Online at www.ssa.gov Back to Experts' Advice Check out Peer Perspectives and join the discussions with other parents.

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"Social security is a benefit sometimes overlooked in long-term planning."