If managed well, Social Security benefits offer a treasure chest full of riches, according to Boston University professor of economics Laurence Kotlikoff, author of “Money Magic: An Economist’s Secrets to More Money, Less Risk and a Better Life.”
For many of us, social security is potentially the biggest source of overlooked retirement funds. In addition to regular monthly social security benefit checks, there are 13 different types of benefits available, including disability benefits, spouse benefits, divorced spouse benefits, childcare benefits, widow / widower benefits, child allowance, invalidity child benefits, mother / father benefits, divorced widow / widower benefits, grandchild benefits and death benefits.
Most Americans are either unaware of these benefits or don’t make the effort to search for them, says Kotlikoff. These types of benefits must be applied for, which means that even if you are eligible, you will not automatically receive them from Social Security.
“The system isn’t making you a gift in providing you benefits,” he points out. “You earn them by making a hefty 12.4 percent FICA contribution of every dollar earned up to a high ceiling. Regardless of how the government labels these contributions as between employee and employer, they all come out of your financial hide.”
