Understanding Social Security
Social Security provides financial support to individuals and families in times of need, such as retirement, disability, or loss of income. It’s designed to help maintain a basic standard of living and offer peace of mind during life’s uncertainties.
It acts as a safety net, ensuring that individuals have some level of financial support when they’re unable to earn due to age, disability, or unexpected circumstances. It’s especially vital for those who don’t have significant savings or private retirement plans, helping to cover essential expenses and reduce financial stress.
Types of Social Security Benefits
Social Security offers a range of benefits tailored to different life stages and situations:
Age Pension: Provides income to individuals who 67 years and older to ensure they can meet their lifestyle expenses now that they are no longer in the workforce
Disability Support: Supports individuals who are unable to work due to a qualifying disability. This includes benefits for their dependents in some cases
JobSeeker Income: Offers assistance to individuals who are currently looking for a job in the workforce
How Are Benefits Determined?
Benefits are typically determined by completing either an income or asset test to see what you are eligible for in relation to your circumstances.
Can I Rely Solely on Social Security for Retirement?
While the Age Pension can be an important source of income, it’s often not enough to fully fund a comfortable retirement. It’s designed to replace only a portion of your pre-retirement income, so additional savings and investments are usually necessary to achieve your desired lifestyle.
How We Can Help
At Radiance Wealth, we can guide you through understanding and maximising your Social Security benefits. Our team will help you:
- Calculate your estimated benefits based on your assets and income.
- Determine the best age to start claiming benefits for your situation.
- Plan how Social Security fits into your overall retirement strategy.
- Explore additional income sources to supplement your benefits.