What is Social Security?
Social Security is a government-sponsored retirement program. It's designed to provide income for retirees, as well as survivors and disabled individuals. To be eligible for benefits, you must have worked in jobs covered by Social Security and earned enough credits.
When you work and pay Social Security taxes, you earn credits that enable you to qualify for Social Security benefits. You can earn up to 4 credits per year, depending on the amount of income that you have. Most people must build up 40 credits (10 years of work) to be eligible for Social Security retirement benefits, but need fewer credits to be eligible for disability benefits or for their family members to be eligible for survivor benefits.
Your retirement benefits
Your Social Security retirement benefit is based on your average earnings over your working career. Your age at the time you start receiving Social Security retirement benefits also affects your benefit amount. If you were born between 1943 and 1954, your full retirement age is 66. Full retirement age increases in two-month increments thereafter, until it reaches age 67 for anyone born in 1960 or later.
You don't have to wait until full retirement age to start receiving Social Security benefits. No matter what your full retirement age is, you can begin receiving early retirement benefits at age 62. Keep in mind, that if you apply for early retirement, your benefit amount will be reduced.
You can also choose to delay receiving retirement benefits past full retirement age. If you delay retirement, the Social Security benefit that you eventually receive will be as much as 8 percent higher for each year you wait. You can receive delayed retirement credit for each month you delay receiving benefits, up to age 70.
Disability benefits
If you become disabled, you may be eligible for Social Security disability benefits. The SSA defines disability as a physical or mental condition severe enough to prevent a person from performing substantial work of any kind for at least a year. This is a rather strict definition of disability, so don't expect to receive Social Security disability benefits if you're only temporarily disabled. Benefits won't begin until the sixth month following the start of your condition. And because processing your claim may take some time, apply for disability benefits as soon as you realize that your disability will be long-term.
Family benefits
If you begin receiving retirement or disability benefits, your family members might also be eligible to receive benefits based on your earnings record. Eligible family members may include:
· Your spouse age 62 or older, if married at least 1 year
· Your former spouse age 62 or older, if you were married at least 10 years
· Your spouse or former spouse at any age, if caring for your child who is under age 16 or disabled
· Your children under age 18, if unmarried
· Your children under age 19, if full-time students (through grade 12) or disabled
· Your children older than 18, if severely disabled
Each family member may receive a benefit that is as much as 50 percent of your benefit. However, the amount that can be paid each month to a family is limited. The total benefit that your family can receive based on your earnings record is about 150 to 180 percent of your full retirement benefit amount. If the total family benefit exceeds this limit, each family member's benefit will be reduced proportionately. Your benefit won't be affected.
Survivor benefits
When you die, your family members may qualify for survivor benefits based on your earnings record. These family members include:
· Your widow(er) or ex-spouse age 60 or older (or age 50 or older if disabled)
· Your widow(er) or ex-spouse at any age, if caring for your child who is under 16 or disabled
· Your children under 18, if unmarried
· Your children under age 19, if full-time students (through grade 12) or disabled
· Your children older than 18, if severely disabled
· Your parents, if they depended on you for at least half of their support
Your widow(er) or children may also receive a one-time $255 death benefit immediately after you die.
Applying for Social Security benefits
The SSA recommends applying for benefits online at the SSA website, but you can also apply by calling (800) 772-1213 or by making an appointment at your local SSA office. The SSA suggests that you apply for benefits three months before you want your benefits to start. Because processing your claim might take some time, apply for disability payments as soon as you determine that your disability will be long-term.
Depending on the type of Social Security benefits that you are applying for, you will be asked to furnish certain records, such as a birth certificate, W-2 forms, and verification of your Social Security number and citizenship. The documents must be original or certified copies. If any of your family members are applying for benefits, they will be expected to submit similar documentation. The SSA representative will let you know which documents you need and help you get any documents you don't already have.
