Social Security uses public funds to provide a degree of economic security for the public as a whole once they have retired or if they become disabled. In the United States, both employers and employees are required to pay social security taxes. The money raised from these taxes benefits those who have reached retirement age or are otherwise eligible to receive such funds.
The system is intended to ensure that when anyone who has worked retires or becomes seriously ill, they will have some type of money to keep themselves and the U.S. economy going.
Throughout your working life, you will pay a certain percentage of your income to the government in social security taxes. Once you retire or become disabled, the government sends you monthly payments based on how much you paid in social security taxes while working. This is known as “work credits,” and you must have a certain number of work credits to get certain benefits. The number you are required to have varies on how long you’ve worked and how recently you’ve worked.
Who Is Eligible for Social Security Retirement Benefits?
The Social Security Administration (SSA) determines a person’s eligibility for Social Security retirement benefits. A person’s eligibility depends on several factors, including:
- The age when they apply for benefits
- Whether they have received Social Security benefits before
- The number of marriages they have had
- Their marriage status at the time of filing
- The person’s record of payment of U.S. Social Security taxes
- Whether they are a current or former government employee
- The person’s citizenship status, i.e., U.S. citizen, non-citizen lawfully admitted to the U.S. or other
- The state in which they reside and the type of their residence, e.g., private residence, nursing home, jail, or other correctional facility
- Whether they are deaf or blind or have another disability
These factors are weighed in the SSA’s calculation of a person’s Social Security retirement benefit.
How Much Social Security Benefits Am I Entitled To?
The amount of Social Security retirement benefits to which you are entitled does not depend on your financial needs. Instead, it is principally based on the amount of income that you have earned and the number of years that you have worked. The amount of a person’s Social Security retirement benefit is based on their average income over their working years, the number of years they have worked, their spouse’s average income, and the age at which a person claims their benefit.
The SSA records all of a person’s years of employment and the amount the person earned in each year. You can access this information at the SSA website. It is a good idea to check the SSA’s records to ensure they are correct. If they are not, you can submit information to correct the records. This is important because it can affect the amount of your retirement benefit. The more years that you have worked and the more money you have earned while working, the higher the amount of your retirement benefit will be.
When Can I Start Collecting Social Security Benefits?
Gradually, over the years, the age of full Social Security retirement benefit has been raised to 67. You can claim their benefits when you reach 62, but you will receive significantly less per month than waiting until your full retirement age.
However, even if you reach full retirement age at 67, if you wait further to begin drawing benefits, your monthly benefit amount rises every month until you reach the age of 70, when it stops increasing. For those reasons, some people think it is advantageous to wait as long as possible, even until 70, to start collecting Social Security benefits.
Keep in mind that the age at which everyone must apply for Medicare is still 65. You will want to apply at 65 unless you have insurance through your employment because if you wait beyond the age of 65, you will pay a penalty. If an employer’s health insurance plan does not cover you, you will want to apply for Medicare at 65.
What Are Possible Reasons Why I Was Denied Social Security Benefits?
The reasons for a denial of benefits depend on which type of benefits a person is trying to get, such as:
- If you are applying for retirement benefits based on your own work history: If you do not meet the minimum age requirement of 62, OR if you have never worked in a job where you paid U.S. Social Security taxes into the system, the SSA will deny your claim for benefits
- If you have not paid Social Security taxes yourself, but if you are or were married to someone you did, you may be eligible for benefits based on their work history. However, if you do not meet the minimum age requirement OR if it turns out you were never married to someone with a work history of paying social security taxes, the SSA will deny you a spousal benefit.
- Surviving spouse: Similarly, you can claim Social Security benefits if you are the surviving spouse of someone who worked and paid Social Security taxes. However, If you do not meet the minimum age requirement if you were never married, OR if you remarried before reaching the age of 60, the SSA might deny you a retirement benefit.
- Child: Children can apply for Social Security benefits if their parent is deceased or lives on Social Security disability funds. If a person’s parent is not deceased or is not receiving Social Security retirement or disability benefits OR if the person is over age 18, not attending high school, and not disabled, the person would be denied a Social Security benefit
Can I Keep Working and Collect Social Security Benefits?
There is no requirement that a person stop working and begin collecting Social Security benefits at any age. Many people who are past the full retirement age and are eligible to collect Social Security benefits continue to work. They can continue to earn any amount of money they can command in the labor market; in fact, they continue to collect credits for their future Social Security benefit and may increase the amount of their future benefit by continuing to work.
However, if a person starts collecting their Social Security benefit before reaching their full retirement age, they are limited in how much they can earn. If they earn more than a certain amount specified by the SSA, the SSA subtracts money from their Social Security benefit.
Once a person reaches their full retirement age, they can claim their full Social Security benefit and continue to work and earn as much as they want without threatening the amount of their Social Security benefit.
Can I Collect More Than One Type of Social Security Benefit?
A person may not collect more than one type of Social Security benefit at a time, e.g., Social Security Disability and Social Security retirement benefits. There are several types of Social Security benefits, and a person might qualify for more than one type. However, a person can collect only one type of benefit at a time.
Do I Need a Lawyer to Help Me Get Social Security?
The laws that regulate Social Security can be complex and confusing. An experienced Social Security attorney can help you understand which Social Security benefits you are entitled to and if you are getting the amount you should. A Social Security attorney also can help you if you need to appeal a denial of Social Security benefits.
If you have an issue with any kind of Social Security benefit, you are most likely to get a successful outcome if you have an experienced Social Security attorney working for you.
