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Social Security And Pensions Are Not The Same Thing

Pensions and Social Security in Kansas City are two very different things and even though Social Security has features of a pension, it is not administered anywhere near the same way pensions are administered. Pensions are benefits that a granted to employees upon their retirement, those that qualify for them are those who have worked for them and have had them granted by their employer. Social Security has nothing to do with an employer, it is a program that is administered by the US Federal Government, it provides two primary benefits; one comes with reaching retirement age and the other is applicable should an individual become physically or mental disabled. When retired people talk about Social Security this is what they are talking about even though many recipients call it their pension, it is not.

There are many different ways to fund a pension plan. In many cases the employee funds the plan and pays into it as long as they continue being employed. Employees can also bank funds which will eventually be their source of income, the same as a pension. Many pensions are fully funded by the employer or the employee’s collective bargaining unit. The way the benefits are paid out is all dependant on the way in which the plan is structured, some pay out upon retirement while others allow funds to be disbursed as needed.

Social Security in Kansas City provides a host of important benefits to those with physical or mental disabilities, to the spouse and minor children of a beneficiary who has died as well as retirees. All the benefits are substantial and can include health coverage as well for certain beneficiaries and temporary assistance in time of dire need. The payments from the Social Security Administration are made monthly, this is another reason why people confuse it with a pension; it is really insurance. The money that is paid out comes from the Federal Government who in turn gets it from those that are currently in the work force, eventually these people get the money back upon their retirement.

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. If a person is receiving Social Security benefits alone, they will find it difficult if they do not own their home outright and have limited needs. For more information visit the site http://grundydisabilitygroup.com

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