jACK MORRIS LUTCF: (254) 773-5031
missy pursley LUTCF: (325)-200-4337
Morris & Pursley Financial Plans
Insurance and Financial Advisors
Social Security is the foundation of economic security for millions of Americans—retirees, disabled persons, and families of retired, disabled or deceased workers. About 158 million Americans pay Social Security taxes and 57 million collect monthly benefits in 2013. About one household in four receives income from Social Security.
Social Security is largely a pay-as-you-go program. This means that today's workers pay Social Security taxes into the program and money flows back out as monthly income to beneficiaries. As a pay-as-you-go system, Social Security differs from company pensions, which are “pre-funded.” In pre-funded retirement programs, the money is accumulated in advance so that it will be available to be paid out to today's workers when they retire. The private plans need to be funded in advance to protect employees in case the company enters bankruptcy or goes out of business.