Navigating Social Security benefits and requirements can be a daunting task for many seniors. Understanding some of the more unique or important terms can help make the process a bit easier.
According to the Social Security Administration (SSA) blog, “Social Security Matters,” these are the four common terms and acronyms you should know:
- COLA – This stands for Cost-of-Living Adjustment. Seniors who receive Social Security benefits may see an annual COLA, which is meant to help keep up with the rising costs of living.
- FICA – The Federal Insurance Contributions Act is the name for the payroll taxes that workers pay into Social Security.
- Credits – Credits are what determine if someone is eligible for Social Security benefits. A person earns credits by working and paying FICA taxes.
- Earnings Record – This is a record of someone’s earnings throughout their working career. The SSA uses this information to calculate benefits.
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