Social Security is the foundation of economic security for millions of Americans — retirees, disabled persons, and families of retired, disabled or deceased workers.The Social Security Administration has prepared materials incorporated into education efforts that can reach youth and dispel the perception that Social Security will not be there for people, especially youth and the Millennials.
Social Security addresses youth directly in these infographics "What the FICA?" & "What is Social Security?" and highlight the following...
If you’re currently working, you’ve probably noticed a few deductions on each of your paychecks. Employers collect a U.S. federal payroll tax known as Federal Insurance Contributions Act withholdings or FICA. This tax is paid by both employees and employers to fund Social Security and Medicare — federal programs that provide benefits for retirees, the disabled, wounded warriors, and children.
The total FICA tax is 15.3 percent of your gross wages. You and your employer both pay 7.65 percent. For Social Security tax, you pay 6.2 percent of your gross wages; for Medicare tax, you pay 1.45 percent of your gross wages.
Today, about 171 million people work and pay these taxes. Any funds that don’t go toward current benefits and administrative expenses are, by law, invested in interest-bearing obligations of the United States. The U.S. Department of the Treasury manages these trust funds.
Social Security is an intergenerational transfer system: today’s workers help pay for current retirees’ and other beneficiaries’ benefits, not their own future benefits. There’s no account set aside with your name and contributions on it.
- Social Security’s website, www.socialsecurity.gov, includes 20 online services, information in 18 languages, and a presence on social media sites like Facebook, Twitter, YouTube and LinkedIn.
- Young adults age 18 and older can open a my Social Security account at www.socialsecurity.gov/myaccount/ to keep track of their earnings and get estimates of future benefits. They can also use their account to request a replacement Social Security card online in some states.