Social Security Tax: 3 States With the Highest Income Exemptions
Social Security is already one of America's most vital social programs for seniors, and its importance only seems to be growing. According to data from the Social Security Administration, more than three out of five seniors relies on their monthly Social Security check to account for at least half of their income. Considering that boomers are retiring from the workforce in greater numbers, life expectancies are increasing, and the saving rate of Americans is pretty poor relative to other developed countries, Social Security's place as America's most important social program is well solidified.
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But in spite of being so important, there's a lot that Americans don't understand about Social Security. For example, a 2015 survey of pre-retirees conducted by AARP with the help of The Financial Planning Association found that just 5% knew how much their benefits would increase if they waited until their full retirement age to claim benefits as opposed to age 62 (25% to 30% being the correct answer). Similarly, only 32% of those surveyed were aware that claiming at age 70 would maximize their benefits.
Source: Fool.com
