Is there a difference between Social Security and a pension?

by | Jun 28, 2013 | Lawyers

Social Security in Bedford PA and a pension are two very different things and although Social Security may have features of a pension, none of it is administered in the same manner in which a pension plan is administered. A pension is a benefit that an individual gets at retirement, the people who receive the benefit are those that have worked for and been granted benefits by their employer. Social Security on the other hand is a form of social insurance that is provided by the US government, it provides a wide range of benefits, one of which is a taxpayer funded benefit upon retirement. When the conversation swings to Social Security, this is usually what is being discussed even though many people confusingly call it Social Security pension, it is not.

Pensions are funded in a number of different ways. In many cases the employee pays into the plan while they are employed or they can bank funds which will eventually provide a stream of funds as would a pension. Pensions can be fully funded by an employer and employee’s collective bargaining unit or the government itself. Depending on how the plan is structures, all the benefits are paid out at retirement or they can be disbursed as needed.

Social Security Bedford PA provide a great number of benefits to people with disabilities, people who have retired and to the spouse and minor children of a recipient who has died. The benefits are quite substantial and include health for certain people, unemployment benefits, retirement benefits and temporary assistance in time of dire need. Because the payments from Social Security are monthly, it is understandable why people think of it as a pension but it is really insurance. The payments come from federal taxes that are paid by those working today; these people are then subject to the insurance when they retire.

Many people have both a pension plan from their employer and they receive their Social Security benefits. The pension plus the Social Security benefits are often needed to survive and if a person is receiving Social Security benefits alone, it is hoped that he will own his home outright and have limited needs.
If you are making application for a benefit from Social Security in Bedford PA, or if a benefit is denied you may need legal advice; if this is the case you are invited to visit J. Kirk Kling, Attorney at Law Bedford PA.

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