Learn About Social Security Benefits Access

Understanding Social Security: The Basics

Social Security is a federal insurance program that has existed since 1935. It works by collecting payroll taxes from current workers and using that money to pay benefits to people who are retired, disabled, or who have lost a family member. The program is run by the Social Security Administration (SSA), an independent government agency.

When you work, your employer takes Social Security taxes from your paycheck. Self-employed people pay these taxes when they file their annual tax returns. These taxes go into trust funds that support the program. Currently, about 67 million people receive Social Security benefits each month, according to the SSA. The average monthly benefit for a retired worker in 2024 is approximately $1,907.

The program works on what's called a "pay-as-you-go" system. The taxes paid by today's workers fund benefits for today's retirees and other beneficiaries. In return, when today's workers retire or become unable to work, benefits will be funded by the next generation of workers. This creates a social contract across generations.

Social Security has several main types of benefits. Retirement benefits go to workers age 62 and older. Disability benefits (SSDI) go to working-age people with severe medical conditions. Survivor benefits go to family members of workers who have died. Each type has different rules about how much you receive and when you can start receiving payments.

Understanding how Social Security works is the first step toward learning about what programs might be available to you. The program is complex, with many rules and options. Having basic knowledge helps you make informed decisions about your future and understand conversations with Social Security representatives.

Takeaway: Social Security is a tax-funded insurance program supporting 67 million beneficiaries. Understanding its basic structure—how it's funded, who runs it, and what types of benefits exist—provides a foundation for exploring specific programs that may meet your needs.

Retirement Benefits: How They Work and What to Know

Retirement benefits are what most people think of when they hear "Social Security." These payments go to workers who have reached a certain age and have paid into the system long enough. The amount you receive depends on your work history, age when you start receiving benefits, and other factors.

To get retirement benefits, you need to have earned enough work credits. You earn one credit for each $1,730 in wages you make in 2023 (this amount changes yearly). You can earn a maximum of four credits per year. Most people need 40 credits total to get retirement benefits—that's roughly 10 years of work. However, younger workers may need fewer credits if they become disabled or pass away.

You can start receiving reduced retirement benefits as early as age 62. However, if you wait longer, your monthly payment will be larger. This is called the "full retirement age," which ranges from 66 to 67 depending on your birth year. If you wait until age 70 to start receiving benefits, your monthly payment will be about 24 to 32 percent higher than if you started at full retirement age. Some people delay claiming specifically to receive this higher amount.

Your benefit amount is based on your highest 35 years of earnings. The Social Security Administration calculates what you would have earned by adjusting for wage inflation. If you worked fewer than 35 years, zeros are added to your calculation, which lowers your benefit amount. People who worked more than 35 years have their lowest-earning years dropped from the calculation.

Your spouse and children may also receive benefits based on your work record. A spouse can receive up to 50 percent of your retirement benefit amount. Children under age 19 (or 19 if still in high school) can receive benefits. A former spouse may also receive benefits under certain conditions, such as being married to you for at least 10 years.

Takeaway: Retirement benefits require 40 work credits (roughly 10 years of work) and can start as early as age 62. Your monthly amount depends on your highest 35 years of earnings and your age when you start. Waiting to claim at 70 instead of 62 can increase your monthly payment significantly, and family members may receive benefits based on your record.

Disability Benefits: Who Can Receive Them

Social Security Disability Insurance (SSDI) provides monthly payments to workers under full retirement age who cannot work due to a serious medical condition. Unlike retirement benefits, you don't need to be a certain age to receive disability benefits. However, you do need to have a condition that Social Security considers severe enough to prevent substantial work.

To qualify for disability benefits, you must have a medical condition that has lasted or is expected to last at least 12 months, or is expected to result in death. The condition must prevent you from working and earning more than a certain amount each month—called "substantial gainful activity." In 2024, this limit is $1,550 per month for non-blind individuals and $2,590 for blind individuals.

Like retirement benefits, SSDI requires you to have earned enough work credits. The number of credits needed depends on your age. Younger workers need fewer credits than older workers. For example, a 24-year-old might need only 12 credits (three years of work), while a 31-year-old might need 20 credits. The exact requirement depends on when the disability started.

The Social Security Administration evaluates disability claims by looking at medical records, doctors' statements, and other evidence of your condition. They have a list called the "Blue Book" that describes conditions they recognize as potentially disabling. However, conditions not on the list can still result in approval if they are severe enough to prevent work.

If your claim is denied, you have options. You can request reconsideration, where a different Social Security employee reviews your case. You can also request a hearing before an administrative law judge. Many people hire representatives to help with the appeals process. Representatives are paid from your back pay if your claim is eventually approved.

While waiting for a disability decision, you can continue working part-time as long as you stay under the earnings limit. Once your claim is approved, you can work part-time under a program called "trial work period," which lets you earn money while still getting your full benefit. This program is designed to help people transition back to work if possible.

Takeaway: SSDI provides income to workers unable to work due to severe medical conditions lasting at least 12 months. Requirements include work credits (fewer credits needed for younger workers) and proof that the condition prevents substantial work. If denied, you can appeal through reconsideration or a hearing before a judge.

Survivor Benefits: Protection for Your Family

If you die, your family members may receive monthly benefits based on your Social Security work record. These are called survivor benefits, and they protect your loved ones financially if you pass away. The amount each family member receives depends on your benefit amount and how many family members are receiving benefits.

Your spouse can receive survivor benefits at full retirement age. A surviving spouse can receive up to 100 percent of what you would have received at your full retirement age. However, if your spouse claims before reaching full retirement age, the benefit is reduced. A surviving spouse caring for your children under age 16 can receive benefits at any age.

Your unmarried children under age 19 (or 19 if in high school) can receive benefits. Children who become disabled before age 22 may continue receiving benefits as long as they remain disabled. Your grandchildren may receive benefits if they were legally adopted by you and meet other requirements.

A surviving divorced spouse may receive benefits if the marriage lasted at least 10 years. This doesn't affect the benefits your current family members receive. A surviving ex-spouse who has not remarried can receive the same amount your spouse would receive. This can be an important protection if you were previously married.

Your parents who depended on you for income may also receive survivor benefits. This is less commonly used but can provide protection if your parents relied on you financially. They must be at least 62 years old and have depended on you for at least half their income.

There is a family maximum benefit amount. Not all family members can each receive 100 percent of your benefit. The total amount all family members can receive is usually between 150 and 180 percent of your benefit amount. If benefits exceed this maximum, each family member's benefit is reduced proportionally. This means larger families receive smaller individual payments.