Approximately 70 million people today receive some form
of Social Security benefits, including retirement, disability,
survivor, and family benefits.1
Although most people receiving
Social Security are retired, you and your family members
may be eligible for benefits at any age, depending on your
circumstances.
The Social Security system is based on a simple premise:
Throughout your career, you pay a portion of your earnings
into a trust fund by paying Social Security or self-employment
taxes. In return, you receive certain benefits that can provide
income to you when you need it most. Your family members
can also receive benefits based on your earnings record.
Your earnings and the taxes you pay are reported to the Social
Security Administration (SSA) by your employer, or if you are
self-employed, by the IRS. The SSA uses your Social Security
number to track your earnings and your benefits.
You can find out more about future Social Security benefits
by signing up for a my Social Security account at the Social
Security website, ssa.gov, so that you can view your online
Social Security Statement. Your statement contains a detailed
record of your earnings, as well as estimates of retirement,
survivor, and disability benefits. If you're not registered for an
online account and are not yet receiving benefits, you'll receive
a statement in the mail every year, starting at age 60. You can
also use the Retirement Estimator calculator on the Social
Security website, as well as other benefit calculators that can
help you estimate disability and survivor 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.
But you don't have to wait until full retirement age to begin
receiving benefits. No matter what your full retirement age,
you can begin receiving early retirement benefits at age 62.
Doing so is sometimes advantageous. Although you'll receive
a reduced benefit if you retire early, you'll receive benefits for a
longer period than someone who retires at full retirement age.
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. That's because you'll
receive a delayed retirement credit for each month that you
delay receiving retirement benefits, up to age 70.
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 strict definition of disability, so if you're only temporarily
disabled, don't expect to receive Social Security disability
benefits — benefits won't begin until the sixth full month after
the onset of your disability. 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.
If you begin receiving retirement or disability benefits, your
family members might also be eligible to receive benefits based
on your earnings record. Check the SSA website for eligibility.
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.
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. If you're applying for disability or
survivor benefits, apply as soon as you are eligible.
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.
1) Fast Facts & Figures About Social Security, 2022.
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