Social Security

Social Security Benefits

Social Security plays a vital role in the financial security of more than 67 million Americans, especially older individuals. Census Bureau data reveals that:

  • For over half of households led by someone aged 65 or older, Social Security provides at least 50 percent of their income.
  • In one out of every five such households, it constitutes nearly 80 percent of their income.
  • It prevents almost 29 million people from falling below the poverty line.

Here are answers to common questions about Social Security:

  1. Who receives Social Security benefits?
    • As of November 2023, about three-quarters of beneficiaries were retirees. The rest included spouses, ex-spouses, children of retirees (3.8%); people with disabilities and their families (12.7%); and survivors of deceased beneficiaries (8.7%).
  2. At what age can I start receiving benefits?
    • You can start collecting retirement benefits at age 62, but waiting until your full retirement age (between 66 and 67, depending on your birth year) results in higher payments. Survivor benefits or Social Security Disability Insurance (SSDI) can be collected earlier.
  3. How do I apply for Social Security benefits?
    • You can apply online, by phone at 800-772-1213, or in person at a local Social Security office. For survivor benefits, apply by phone or in person. The SSA recommends making an appointment.
  4. How long must I work to qualify for benefits?
    • For retirement benefits, you need at least 10 years of work. You earn credits by working and paying Social Security taxes. You can earn up to four credits a year, and you need 40 credits for retirement benefits. The credit threshold may be lower for disability benefits.
  5. Can I work and receive retirement benefits?
    • Yes, you can receive benefits while working. If you’re below full retirement age and earn over a certain amount, your monthly benefits will be temporarily reduced. Once you reach full retirement age, the reduction ends, and your benefits increase to make up for the reduction over time.
  6. How much will I receive?
    • Your lifetime earnings from work in which you paid Social Security taxes are crucial. Social Security calculates your “basic” benefit based on your 35 highest-earning years, adjusted for inflation. Your age when you claim benefits also affects the amount.
  7. What’s the maximum monthly benefit?
    • For a worker claiming in 2024 at full retirement age, the highest monthly amount is $3,822, about double the estimated average retirement benefit ($1,907 in January 2024).
  8. How can I increase my benefit amount?
    • The longer you wait after becoming eligible, the more you’ll receive. If you wait until full retirement age (67 for those born in 1960 or later), you’ll get 100 percent of your benefit amount. Delaying past this age increases your benefit by 8 percent each year until age 70.
  9. Can I receive benefits based on an ex-spouse’s earnings?
    • You may be able to claim a divorced-spouse benefit if the marriage lasted at least 10 years, you’re at least 62, and you haven’t remarried. You could receive up to 50 percent of your ex-spouse’s full benefit amount, if it exceeds your own.
  10. How does Social Security know when someone dies?
    • The SSA is informed of beneficiaries’ deaths by family members, funeral homes, and government agencies. It’s advisable to inform Social Security directly as soon as possible, even if you believe someone else will report the death.

-Bách Khoa-