Social Security
Our Government Pension
Social Security is a federal program designed to provide financial assistance to retirees, disabled individuals, and survivors of deceased workers. It is funded through payroll taxes collected from employees and employers. For many retirees, Social Security benefits form a crucial part of their retirement income.
Social Security benefits are a vital part of the financial landscape for many Americans, providing critical income to retirees, disabled individuals, and survivors of deceased workers. Eligibility for these benefits depends on several factors, including age, work history, and disability status. We will explore the various categories of individuals who can draw Social Security benefits and the specific requirements for each category.
Eligibility
Eligibility for Social Security benefits depends on your work history and the amount you have contributed to the program. Generally, you need to have worked for at least ten years and earned a certain number of credits to qualify. The amount of benefits you receive is based on your lifetime earnings and the age at which you start claiming benefits.
The earliest you can start receiving Social Security retirement benefits is at age 62, but claiming early will reduce your monthly benefit amount. On the other hand, delaying benefits past your full retirement age can increase your monthly payments due to delayed retirement credits.
Retirement Benefits
Retirement benefits are the most well-known type of Social Security benefits, and they are available to individuals who have reached a certain age and have a sufficient work history.
Age Requirements
To qualify for retirement benefits, an individual must be at least 62 years old. However, claiming benefits at this age will result in a reduced monthly payment compared to waiting until full retirement age (FRA), which ranges from 66 to 67, depending on the year of birth. Delaying benefits past the FRA can increase the monthly payment up to age 70.
Work History
Eligibility for retirement benefits also requires that the individual has earned enough work credits by paying Social Security taxes. Typically, 40 credits, equivalent to about 10 years of work, are needed to qualify for benefits.
When to Start Drawing
Early retirement is which is 62 is the earliest age you can collect. You will take a 30% hit drawing at 62 and for every year you wait you will gain approximately 8% more.
Don't forget to take inflation into account as well. You should work until you can afford to retire, not because you simply don't want to work anymore.
Disability Benefits
Social Security Disability Insurance (SSDI) provides benefits to individuals who are unable to work due to a severe disability that is expected to last at least one year or result in death.
Medical Criteria
To qualify for SSDI, the applicant must have a medical condition that meets the Social Security Administration's (SSA) definition of disability. This means the condition must be severe enough to prevent the individual from performing any substantial gainful activity.
Work History
Similar to retirement benefits, SSDI requires that the individual has earned enough work credits. The number of credits needed varies based on the age at which the individual becomes disabled, but generally, a younger person will require fewer credits than an older person.
Survivor Benefits
Survivor benefits are available to the family members of deceased workers and provide financial support to help them cope with the loss of income.
Eligible Family Members
- Widows and widowers, starting at age 60 (or age 50 if disabled)
- Unmarried children under 18 (19 if still in high school)
- Adult children who were disabled before age 22
- Dependent parents aged 62 or older
- Work History of the Deceased
The deceased worker must have earned enough work credits for their family members to be eligible for survivor benefits. The number of credits required depends on the worker's age at the time of death, but fewer credits are needed for younger workers.
Supplemental Security Income (SSI)
SSI is a needs-based program that provides financial assistance to elderly, blind, or disabled individuals with limited income and resources, regardless of their work history.
Age and Disability Criteria
To qualify for SSI, an individual must be 65 or older, blind, or disabled according to the SSA's definition.
Income and Resource Limits
SSI eligibility is determined based on the individual's income and resources. The SSA sets specific limits on the amount of income and resources an applicant can have and still qualify for SSI.
Spousal Benefits
Spousal benefits allow the spouse of a retired or disabled worker to receive benefits based on the worker's earnings record.
Age Requirements
A spouse can receive spousal benefits as early as age 62, but, similar to retirement benefits, the amount will be reduced if claimed before the FRA.
Work History of the Worker
The worker must be entitled to Social Security retirement or disability benefits for their spouse to qualify for spousal benefits.
Divorced Spousal Benefits
Divorced individuals may also be eligible for spousal benefits based on their ex-spouse's earnings record.
Eligibility Criteria
To qualify for divorced spousal benefits, the marriage must have lasted at least 10 years, the individual must be unmarried, and their ex-spouse must be entitled to Social Security retirement or disability benefits.
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Page Last Updated: 20 March 2025