Strategy Beginner: Social Security, Medicare and Retirement

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1.
Self-employed individuals must pay all their Social Security taxes themselves.
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True. If you are self-employed, you must pay all Social Security taxes yourself, including the portion that an employer would otherwise pay on your behalf.
2.
Children may be able to receive 100 percent of a parent's Social Security benefit amount.
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False. If you are eligible, children may be able to earn up to 75 percent of your current benefits.
3.
Social Security retirement benefits have faced financial challenges due to payroll taxes and interest on bonds being insufficient to cover the payouts on their own. To cope with this issue, Social Security has been redeeming _______.
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Asset reserves. At that stage, the reserves are being drawn down and may disappear if a solution is not found.
4.
If you wait several years past the earliest date to collect Social Security, your benefit will _______.
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Increase. The longer you wait to collect Social Security benefits, the higher the monthly benefit will be.
5.
A(n) _______ allows your spouse or your children to receive your Social Security benefits if you should die.
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Survivor benefit. Survivor benefits let one's spouse and/or children share the money he or she would have gotten.