How does retirement work?

Question

I’m young and only worked for about half a year. Now I’m a SAHM. I want to go to work sometime soon because someone mentioned to me about more money with retirement in the future.

Answer

Well you'll have to save up money for retirement somehow. I save 6% of my paycheck in a 401k currently and will probably increase that and start a Roth IRA also at some point. I'm banking more on that than on social security. Even if it's still around when I'm old, it doesn't pay a lot

Answer

The way retirement works is when you work on the books and you get paid with a W-2, you contribute to both Medicare and Social Security. Depending on the number of years you’ve worked, you build up a number of credits with Social Security. When you contributed based on your age it tells you with a calculator on their website how much you would receive if you retired at a certain age, the longer you work, the more you receive. A lot of people are retiring more in their late 60s and 70s because they receive more money. Some people work until they are ready to pass. Because you can continue to work, and receive Social Security. Same thing with disability, I believe you’re allowed to earn like $12,000 a year and still receive disability he may have gone up over the years I can’t remember. But you have to work on the books not cash jobs for self-employment unless you’re contributing on your own or you contributing to a Roth IRA 401(k) type of accounts. And for those who don’t contribute with a job on the books, they get SSI which is very small amount of money for your old age. Now if you’re married, and your spouse passes away, you are entitled to their Social Security they also check who worked more and who’s credits has more in. When my father died when my mother was 52, she received widows pension which was his Social Security, when she was of age to retire herself, they switched it to her Social Security because she worked longer because my father passed away in 1983. My mother is 75 and she still works and receives her social security. ￼￼￼

How does retirement work?

The Top Baby Tracker App: Embrace New Beginnings with Tender Care

The Top Fertility Tracker App: Your Path to Achieving Pregnancy

The Top Pregnancy App: Nurturing Your Journey to Motherhood

The Top Period Tracker for Empowering Your Menstrual Health Journey