Benefits of Social Security

If you are one of those people who don’t appreciate the idea of having a portion of your income going to social security, this primer will help you learn the benefits of social security and what it can do for you. Life is uncertain and so is the country’s economy. When finances are short, your social security will be there to help you, giving you insurance for your retirement, your disability, unemployment, and support just in case you meet a premature death. You must know that the money you contribute to social security is put into good use and invested in trust funds and government bonds that pay for the country’s public works.

According to a survey on Social Security Online, majority of the income source of American elderly comes from the benefits of social security. Having a social security for you and your loved ones is a major decision that can greatly impact your future. Your eligibility will vary on your age and condition. In reality, you will need a social security number, from having a job to paying your taxes. To qualify for the benefits of social security, you need to have 40 credits or an equivalent of 10 working years. If you’re younger, you will only need fewer credits to qualify.

What are the Benefits of Social Security?

Retirement Benefits

When you reach the full retirement age, you will receive full benefits. If not, you will be receiving reduced benefits on your retirement age. For those born in 1937 or earlier, full retirement age is at 65. For those born between 1943-1954, full retirement age is at 66. For those born on 1960 or later, full retirement age is at 67. If you delay getting your full benefit beyond the full retirement age, you can increase your benefits ( this is age-dependent ). If you reach your full retirement age and you’re still working, you can still get full benefits. There will be limits on how much you will receive by that time, depending on your income. Widows or widowers can set their retirement benefits as early as they reach 62 years, this is in case you have more benefits than your deceased spouse. You can received reduced benefit until you switch to a full benefit at your retirement age. The rules for widows/widowers are much complex and it is best to speak with a Social Security rep about the benefits of social security.

Disability Benefits

Disability means your inability to work due to a mental or physical condition, which can last to at least a year, and sometimes can lead to death. Not everyone qualifies for a disability benefit, even if you have a written statement from your doctor. It is always best to apply as soon as this unfortunate incident happens so you can have your claims processed quickly. It is important for you to keep your medical records ( with treatment dates ), laboratory test results, information of your health care professional and institution, prescriptions, and your employment history for the past 15 years. If you have limited resources, you can apply for a Supplemental Security Income or SSI. Remember that this benefit can be taxable. Your family members can also get payments if he or she is 62 or older, 18 years old or less, between 18-19 as a full-time elementary or secondary

student, severely disabled before age 22, or anyone who cares for your child who is younger than 16 or is disabled.

Survivor Benefits

Heaven forbids.. that if you meet death, your family will be eligible to get the benefits of your social security. This will include a family member ( widow/widower ) who is 60 or older, disabled at age 50 or older, or anyone who cares for your child who is younger than 16 or is disabled. Children can also get benefits when they are younger than 18 years, between 18-19 as a full-time elementary or secondary student, or severely disabled before age 22.

The truth is, there are plenty of changing variables that can affect the amount of benefits of social security you will receive, like, inflation rate, value of money, discount rate, and the working status of the person receiving the benefit. One must remember that there is a limit to the monthly payment made from a social security benefit. It usually varies from 150-180 percent of the benefit’s rate. There is also a one-time payment of $255 to your spouse or children when you die, depending on the requirements met. These benefits are normally sent through direct deposit, which is a safe and simple way to get your benefit payments.

You need to check your account statement to make sure you are receiving the right monthly benefit. You may also arrange how these monthly payments will be made. For more information, you may check Social Security Online ( www.socialsecurity.gov ), or you may call their toll free number at 1-800-772-1213. All calls are treated with confidentiality. You may call Mondays to Fridays, from 7:00 am to 7:00 pm. For the hearing-impaired, you may reach this toll-free number 1-800-325-0778.

RESOURCES:

Social Security Online. “ Understanding the Benefits. “ January 2009.

http://www.ssa.gov/pubs/10024.html

Grabianowski, Ed. “ How Social Security Works. “ 1998-2009. HowStuffWorks, Inc.

http://money.howstuffworks.com/personal-finance/financial-planning/social-security1.htm

White, Rich. “ Top 6 Myths About Social Security Benefits. “ 2009. Investopedia ULC.

http://www.investopedia.com/articles/retirement/08/6-retirement-myths.asp