Social Security
| 2023 | |
|---|---|
| Retired workers | 50.1 million ($1,905 average monthly benefit) |
| Survivors | 5.8 million ($1,501 average monthly benefit) |
| Disabled workers | 7.4 million ($1,537 average monthly benefit) |
| People age 65 and older were receiving a Social Security benefit | Nearly 9 out of 10 |
| Social Security contribution to the income of people over age 65 | About 30% |
| 2022 | |
|---|---|
| Social Security beneficiaries | 55% of adult were women |
| People benefited from programs by the Social Security Administration (SSA) | 70.6 million |
| New people benefited by Social Security | 5.6 million |
| Average age of disabled-worker beneficiaries | 55.6 |
“Social Security” covers more ground than just retirement. Nearly all-American workers have “Social Security” included in their retirement plan. Insurance for income, namely Social Security. The majority of those over 65 primarily receive their income from Social Security.
Social Security, which offers “disability or retirement,” and survivorship benefits, is among the most effective anti-poverty initiatives in the history of the USA. The biggest and most significant income maintenance program in the US is the “Old-Age, Survivors, and Disability Insurance” (OASDI) program, and it is referred as Social Security.
As early as age 62, you are eligible to begin receiving “Social Security” retirement benefits. When you do, however, reach “full retirement age,” you will be eligible for “full benefits.” Your “benefit amount” will increase, if you begin receiving benefits at age of 70 (i.e., crossing the present “full retirement age”). “Normal Retirement Age” (NRA) is another name for “full retirement age.”
Your “benefit amount” is lowered slightly if you begin receiving it at an earlier age. To know how much is lowered, visit — “ssa.gov/benefits/retirement/planner/agereduction.html”.
The “full retirement age” for those born in 1960 and later is now 67. For complete age catalog, visit — “ssa.gov/benefits/retirement/planner/ageincrease.html”.
Before receiving Medicare, “retirement or disability,” and survivorship advantages for yourself or your family, you must be insured by the Social Security plan.
Social Security Eligibility -
Your “quarters of coverage” are taken into account by the SSA when determining your insurance status. For a specific amount of work defined under Social Security, you are paid a single “quarter of coverage (QC)”; however, you are only eligible to receive up to 4 QCs annually. “Quarter of coverage,” sometimes known as “Social Security credit” (or plain “credit”).
In 2024, $1,730 in earnings is needed for a “quarter of coverage (QC)”. Every year, the minimum amount of earnings required to obtain a “credit (QC)” may vary.
Social Security benefits are generally only available to those who are “fully insured,” though there may be additional conditions.
Fully Insured -
In order to be completely covered, you “must have at least one QC for every year that follows your 21st birthday” and must have sooner than the following:
- the year prior to turning 62,
- the year preceding your disability, or
- the year before to your demise.
There must be a minimum of 6 QCs for “fully insured.” 40 is the maximum QCs required.
When calculating the number of QCs you require, “any year” — wholly or partially — that was a part of a disability period is excluded.
Permanently Insured -
If you are “fully insured,” and remain so even after you cease working for a covered employment; then you are “permanently insured.” Further, you are “permanently insured” in case you have accrued the maximum 40 QCs. You will receive retirement benefits if you are “permanently insured.”
E.g., 1949 is the year of your birth. 1970 was the year you turned 21. Between 1971 and 1977, you were employed under covered employment, and accrued 28 “quarters of coverage (QCs)”. After obtaining six QCs, you became “fully insured.” Because 1998 minus 1970 equals 28, you were “fully covered/insured” if you were to pass away or “become handicapped” until the end of 1999. You were no more “fully insured” after 1999. Further, you were never “permanently insured” since you only acquired 28 QCs.
Disability Insured -
If you are “fully insured”, at age 31 or older, and have acquired a minimum of 20 QCs in the last ten years, you are considered to have “disability insured” status. Age-related differences in the minimum number of recent QCs needed, range from 6 out of the 12 quarters right before the start of disability to “20 out of the last 40.” For more information, visit — “secure.ssa.gov/poms.nsf/lnx/0300301140”.
Further there is a broad table describing “disability developed at which age” and credit needed. Exceptions are applicable as usual.
Social Security Credits -
For Social Security benefits to be available to you, you must accrue at least 40 “Social Security credits” (40 QCs). Credits are obtained through working and “Social Security tax payments.” Even if you change occupations or are unemployed for a period of time, the credits you earn are still recorded on “SSA” records. You might receive additional credits if you go back to work later.
Certain types of employment do not qualify for “Social Security” benefits, such as certain government employees who choose not to participate.
Medicare, “retirement or disability benefits,” and “your family’s eligibility for survivors benefits” are all based on the number of credits you have.
The “benefit amount” you will obtain is independent of the “number of credits.” When you get benefits, your monthly payment is determined by using the average of your earnings throughout the course of your working years rather than the “entire number of credits earned.”
Certain jobs, such as “self-employment, military service, domestic work, farm work, etc.,” are subject to special rules for “credits” calculation.
Social Security Benefits -
Various benefits are provided by the Social Security Administration (SSA), including: Medicare, “retirement or disability benefits,” and “survivors benefits.” The usual method used to calculate Social Security benefits is “average indexed monthly earnings” (AIME). This average represents the indexed earnings of a worker for a maximum of 35 years.
Retirement Benefits -
“Social Security” offers qualifying retirees and their families a retirement income. Retirement benefit recipients often receive from “Social Security” a percentage of their pre-retirement wages. Your “benefit payment” is determined by the SSA based on your total earnings during your working career. “Benefit amount” is higher for greater lifetime earnings.
You can obtain a projection of your own retirement benefits based on various retirement ages if you have a “my Social Security” account. Create your own “my Social Security” account at “ssa.gov/myaccount” if you don’t have.
You have the option to work past the “full retirement age.” An another “earnings year” is added to your “Social Security” record for every additional year you work. Increased lifetime earnings may translate into increased retirement benefits. Additionally, for every full year that you postpone claiming Social Security payments past “full retirement age,” the SSA will increase your payout by 8%. Benefits can be postponed till the age of 70.
Certain Social Security recipients will be required to pay income tax on their “payments” (that surpass the thresholds).
Disability Benefits -
Two systems are used by Social Security to award disability benefits: “Supplemental Security Income” (SSI) and “Social Security Disability Insurance” (SSDI). Those unable to work due to a “medical emergency,” that is anticipated to last at least a year or “cause death,” are eligible for disability benefits from the SSA.
An individual must be unable to participate in “substantial gainful activity” (SGA) in order to qualify for disability benefits. The “type of impairment” a person has determines whether their monthly income is classified as SGA. Generally speaking, SSA considers you to be part of SGA if you are making “more than a specific amount” and are doing productive work.
A disabled worker may choose to receive “old-age benefits” (starting at age 62) instead of disability benefits. Upon reaching “full retirement age,” conversion to old-age benefits, which are paid under the “Old-Age and Survivors Insurance” (OASI) program, happens automatically.
You must pass both the “duration of work test” and the “recent work test” in order to be eligible for disability benefits. Your age determines how many “credits” you need to pass the “recent work test.” Some blind employees merely need to pass the “duration of work test.” For more information, visit — “ssa.gov/benefits/retirement/planner/credits.html”.
As processing an application can take several months, you should apply for “disability benefits” as soon as you become disabled.
Survivors Benefits -
Widows, widowers, and “other family members of qualified workers” get Social Security survivors benefits. Some family members may be entitled to “survivors benefits” after you pass away. Children, dependent parents, and surviving spouses (even divorced surviving spouses) are considered members. For benefits to be eligible, the deceased individual has to have worked long enough.
The SSA should be notified of a person’s death right away with his/her “Social Security number.” In certain situations, benefits may not be retroactive, so if you are not receiving them, you should file for “survivors benefits” right away. Report the incident to SSA via “placing a call, providing SSN to the funeral home, or through visiting local office.”
The surviving spouse may get a “lump-sum death payout” (LSDP) of around $255 one time. Payment is provided to a child listed on the deceased’s record in the month of death if there is “no surviving spouse.”
You have to refund the “Social Security” payment for the month of death and any subsequent months if the deceased had been getting “Social Security” benefits.
If the dependent parents are 62 years of age or older, they can be eligible for “survivors benefits.”
The surviving spouse, after attaining “full retirement age,” might be eligible for full benefits. If the surviving spouse is disabled, benefits may start “as early as age 50,” otherwise reduced benefits may start at age 60.
If the surviving spouse looks after “disabled or under 16 young children,” they can be eligible for payments at any age. Additionally, under certain conditions, “young unmarried children” (under the age of 22) may also be eligible for benefits.
Medicare -
For those 65 and over, Medicare is a “federal health insurance program.” Medicare may also be available to those under 65 who have “certain disabilities, amyotrophic lateral sclerosis, or persistent kidney failure.” Following two years of taking “disability benefits,” you will automatically become eligible for Medicare. Further, the first day of the month, in which you turn 65, will mark your automatic enrollment in “Part A and B,” if you are currently receiving Social Security benefits.
Medicare is divided into “different components” (Part A, B, C and D) to cover your needs, taking into account budgetary limitations. Enrollment in “Original Medicare” (Part A and Part B) is facilitated by Social Security. If “Original Medicare” is what you have if you get your Part A and Part B benefits straight from the government.
Medicare is a separate program from Medicaid. Medical and hospital coverage for “low-income individuals” is provided through “Medicaid” (a state-run program). The qualifications for eligibility and the scope of coverage under Medicaid vary by state.
In order to enroll in Medicare, if you are getting close to turning 65 and are not receiving Social Security benefits, you should get in touch with the SSA “three months before” to your 65th birthday. Even if you do not intend to retire at age 65, you should still “enroll in Medicare.”
For detailed information regarding Medicare, visit — “ssa.gov/pubs/EN-05-10043.pdf”.
*the aforementioned data came from “ssa.gov/OACT/progdata/insured.html”, “ssa.gov/benefits/retirement/planner/credits.html” and “ssa.gov/OP_Home/cfr20/404/404-0000.htm”.
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Official Website of Social Security Administration: https://www.ssa.gov/
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