It is important that you understand how the Social Security Pension works, so that you can plan for the quality of life you wish to have for a comfortable retirement for you and your family.
First and foremost, you should know how much you’ll receive from Social Security when you retire.
If you are unaware of your future earnings, you run the risk of underestimating…
…what additional income you need to save, too maintain your desired standard of living.
Being aware, you are more likely to bridge the gap between the pension income you will receive, under the Social Security Pension and the desired quality of life you are enjoying whilst in employment, earning income and saving for your retirement.
A miscalculation in your retirement planning, during your life event journey, leading to your retirement, is likely to negatively affect you and your family’s quality of life during retirement. Once you have retired, it may be too late to boost your Social Security Pension income with any other income, as at that point in time you are likely to have limited opportunities to build a retirement savings egg nest.
The Social Security Act (SSA) provides for two types of employment.
A Class One (I) contribution refers to a person who is employed.
If you are a self-employed person or a self-occupied person, you pay a Class Two (II) contribution.
For employed persons who pay class (I) contributions, the social security contribution paid is as follows :
N.B. The contribution paid is on basic wage and capped to a Maximum Pensionable Income.
For self/employed / self/occupied persons who pay class II contributions, the social security contribution paid is as follows :
