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Discover 9 Surprising Insights About Social Security for Siemens Aktiengesellschaft Employees That Could Transform Your Retirement Planning

Social Security’s been a fact of retirement life ever since it was established in 1935. We all think we know how it works, but how much do you really know? If you work for Siemens Aktiengesellschaft, here are nine things that might surprise you.

The Social Security trust fund is huge. At $2.9 trillion at the end of 2018, it exceeds the gross domestic product (GDP) of every economy in the world except the ten largest: China, the European Union, the United States, India, Japan, Germany, Russia, Indonesia, Brazil, and The United Kingdom.
Most workers including those at Siemens Aktiengesellschaft are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.
As an employee of Siemens Aktiengesellschaftk, you don’t have to work long to be eligible. If you were born in 1929 or later, you need to work for 10 or more years to be eligible for benefits.
Benefits are based on an individual’s average earnings during a lifetime of work under the Social Security system. The calculation is based on the 35 highest years of earnings. If an individual has years of low earnings or no earnings, Social Security may count those years to bring the total years to 35.

Those at Siemens Aktiengesellschaft may also want to consider how there hasn't always been cost-of-living adjustments (COLA) in Social Security benefits. Before 1975, increasing benefits required an act of Congress; now increases happen automatically, based on the Consumer Price Index. There was a COLA increase of 2.9% in 2019, but there was only an increase of 2% in 2018.
Social Security is a major source of retirement income for 67% of current retirees, including those at Siemens Aktiengesellschaft.
Social Security benefits are subject to federal income taxes — but it wasn’t always that way. In 1983, Amendments to the Social Security Act made benefits taxable, starting with the 1984 tax year.
Social Security recipients received a single lump-sum payment from 1937 until 1940. One-time payments were considered “payback” to those people who contributed to the program. Social Security administrators believed these people would not participate long enough to be vested for monthly benefits.

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In January 1937, Earnest Ackerman became the first person in the U.S. to receive a Social Security benefit—a lump sum of 17 cents.

1. Social Security Administration, 2018; CIA World Factbook, 2018
2-5, 7-9. Social Security Administration, 2019
6. Employee Benefit Research Institute, 2018

What is the Siemens Aktiengesellschaft 401(k) plan?

The Siemens Aktiengesellschaft 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

How can employees of Siemens Aktiengesellschaft enroll in the 401(k) plan?

Employees of Siemens Aktiengesellschaft can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

Does Siemens Aktiengesellschaft match employee contributions to the 401(k) plan?

Yes, Siemens Aktiengesellschaft offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the maximum contribution limit for the Siemens Aktiengesellschaft 401(k) plan?

The maximum contribution limit for the Siemens Aktiengesellschaft 401(k) plan aligns with IRS guidelines, which may change annually. Employees should check the latest limits for the current year.

Can employees of Siemens Aktiengesellschaft take loans against their 401(k) savings?

Yes, employees of Siemens Aktiengesellschaft may have the option to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What investment options are available in the Siemens Aktiengesellschaft 401(k) plan?

The Siemens Aktiengesellschaft 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance and retirement goals.

Is there a vesting schedule for the Siemens Aktiengesellschaft 401(k) plan?

Yes, Siemens Aktiengesellschaft has a vesting schedule for employer contributions, meaning employees must work for a certain period before they fully own the company’s matching contributions.

How can employees of Siemens Aktiengesellschaft access their 401(k) account information?

Employees of Siemens Aktiengesellschaft can access their 401(k) account information through the online portal provided by the plan administrator or by contacting the HR department.

What happens to the Siemens Aktiengesellschaft 401(k) plan if an employee leaves the company?

If an employee leaves Siemens Aktiengesellschaft, they may have several options for their 401(k) plan, including rolling it over to an IRA or a new employer’s plan, or cashing it out, subject to taxes and penalties.

Are there hardship withdrawal options available in the Siemens Aktiengesellschaft 401(k) plan?

Yes, Siemens Aktiengesellschaft allows hardship withdrawals under certain circumstances, enabling employees to access their funds for specific financial needs.