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Home Dictionary S Social Security Social Security is a federal program in the United States that provides retirement and disability income to qualified people and their spouses, children, and death survivors. To be eligible for Social Security retirement benefits, employees must be at least 62 years of age and must have paid into the system for 10 years or more. Workers under the age of 70 awaiting Social Security will receive higher monthly benefits. The amount of these benefits is calculated based on your average indexed monthly earnings (AIME) for your highest earning 35 years and thus varies from person to person. People who cannot work because of a disability, as well as surviving spouses and children, may also be eligible for benefits if they meet certain requirements. Cost-of-Living Adjustment (COLA)
September 25, 2022 Cost of Living Adjustment (COLA) is an increase in Social Security benefits to counteract inflation. National Average Wage Index (NAWI)
September 25, 2022 The National Average Wage Index (NAWI) tracks wage growth for US workers as a measure of inflation. Normal Retirement Age (NRA)
September 25, 2022 Full Retirement Age (FRA) is the age you must be to receive full retirement benefits from Social Security. Old-Age, Survivors, and Disability Insurance (OASDI) Program
September 25, 2022 Old Age, Survivors and Disability Insurance (OASDI) is the official name for Social Security benefits. Social Security Administration (SSA)
September 25, 2022 The Social Security Administration (SSA) oversees and administers the Social Security program in the United States. Social Security Number (SSN)
September 25, 2022 A Social Security Number is a numeric identifier assigned to US citizens and other residents to track income and determine benefits. 401(a) Plan
September 25, 2022 The 401(a) plan is employer-sponsored and both employer and employee can contribute. 401(k) Plan
September 25, 2022 A 401(k) plan is a company-sponsored retirement account that employees can contribute income to and employers can contribute to. 403(b) Plan
September 25, 2022 403(b)s are retirement savings plans that serve employees of public schools and tax-exempt organizations. 408(k) Plan
September 25, 2022 A 408(k) is an employer-sponsored pension plan similar to a 401(k). 412(i) Plan
September 25, 2022 The 412(i) plan was a defined benefit plan designed for small business owners in the United States. 457 Plan
September 25, 2022 Plan 457 is an IRS-sanctioned retirement plan for employees with tax benefits. AARP
September 25, 2022 AARP is a non-profit, non-partisan organization that empowers retirees to choose how they live in old age. Accumulation Phase
September 25, 2022 The accumulation phase refers to the period of a person’s life during which he saves money for retirement. After-Tax Contribution
September 25, 2022 After-tax contributions can be made to the Roth account. Annuitant
September 25, 2022 An annuitant is an investor or beneficiary of a pension plan who is entitled to regular pension payments or annuity investments. Annuitization
September 25, 2022 Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuity
September 25, 2022 Annuities are financial products that offer a guaranteed income stream, typically for retirees. Annuity Due
September 25, 2022 An annuity payment is an annuity that must be paid immediately at the beginning of each period. Annuity Table
September 25, 2022 An annuity table is a tool used to determine the current value of an annuity. Baby Boomer
September 25, 2022 “Baby Boomer” refers to the demographically large generation born between the end of World War II and the mid-1960s. Chartered Retirement Planning Counselor (CRPC)
September 25, 2022 A Certified Retirement Planning Consultant is a person who has the status of a professional financial planner awarded by the College of Financial Planning. Deferred Annuity
September 25, 2022 A deferred annuity is an insurance contract that promises to pay the buyer a regular income or a lump sum of money some day in the future. In contrast, immediate annuities start paying immediately. Deferred Compensation
September 25, 2022 Deferred compensation plans are an incentive that employers use to keep key employees. Deferred Profit Sharing Plan (DPSP)
September 25, 2022 The Deferred Profit Sharing Plan (DPSP) is an employer-sponsored Canadian profit sharing plan used for employee retirement savings.