Benefits from Social Security

Benefits from Social Security

A lot of people ask "what is social security and what does that have to do with me" well, it has something to do with all of us. If you work for a company, social security is coming out of your check and if you are self employed, you are paying into social security when you file your taxes.  So what happens when you pay into it? You get a check during your retirement age. Now I can't say if Social Security will be around forever, but currently you're are paying into social security so here's the deal, Social Security benefits are created for working Americans when they retire. To qualify for these benefits, you must have contributed to the Social Security system via your employment. People who are disabled, retired,  taking care of a dependent child or other person also get paid through Social Security. Your monthly payment is calculated using your earnings from Social Security-eligible employment. These programs are managed by the Social Security Administration (SSA), who receives funding from payroll taxes paid by both employers and workers. You must earn at least 40 Social Security credits to qualify for Social Security benefits. You earn credits when you work and pay Social Security taxes. 


Retirement Benefits


When you reach full retirement age and have paid into Social Security for a long enough period of time to be eligible for retirement benefits, you will either get a monthly check or an annual lump sum payment (FRA). For individuals who were born before 1938, the FRA is 65, and it progressively rises to 67 for those who were born after 1959. You have the option to continue working after reaching full retirement age. Your potential future Social Security benefits might be increased if you do. 


Full retirement age chart 


 “Work” after retirement age


I've asked this question several times, "what age do you want to be when you retire" and a lot of people in their 20's or 30's say around 50. There are several benefits to working, even part-time, while you still can. For instance, some people don't feel like they are working since they enjoy what they do. In other words, not everyone will need to "work" once they retire; instead, they may keep themselves pleasantly occupied with interesting hobbies and activities that they already enjoyed. Oprah is 65 and still has her talk show, another example of what "working" after your retirement age looks like.



Disability Benefits


You may qualify for disability benefits if you become disabled before attaining full retirement age, are unable to work in Social Security-covered positions, and your condition is predicted to endure longer than a year or result in death. Before becoming incapacitated, you had to have worked for at least five of the previous 10 years (or having a disability that began before age 22). You can be qualified for Social Security Disability Insurance benefits if you experience an illness or accident that keeps you from working (SSDI). To be eligible for an SSDI payout, you must have worked long enough and paid enough into the Social Security system. To qualify for benefits, you must have completed a sufficient number of quarters of covered employment (and earned a certain amount of money).


Survivor benefits


Survivor benefits are for spouses, children and parents of deceased workers. When someone who has been paying into the Social Security system for a long time dies, the Social Security Administration distributes survivor payments. These include support for surviving spouses (including separated spouses) and dependent children who relied on the dead worker's income in the years prior to their passing.



How to know your benefits


The first step is to create an account with the Social Security Administration so you can obtain an idea of how much Social Security you will get when you retire. You can see the projected amount you would receive at 62, the typical retirement age, and if you wait until 70 when you set up your account.

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