Introduction To Social Security Benefits

The Social Security Administration can provideSocial Security Administration pays disability
benefits in three different categories, they include;benefits in two different ways, one being through
when you retire, if you become disabled, andthe Social Security disability program insurance,
lastly when you die. Information about Socialthe second one is through the Supplemental
Security benefits can be found on the SocialSecurity Income (SSI) program. To find
Security Administration's website. The age toinformation regarding the SSI disabilities program
receive full retirement benefits has been 65 forplease click on the link provided. Social Security
many years now however for people born afterpays benefits to people who can't work because
1938 it is gradually increasing until it reaches thethey have a medical condition that is expected to
age of 67 for people born after 1959. An individuallast at least one year or result in death. The
may start receiving retirement benefits as earlyfederal law requires such strict definition of
as age 62, however if an individual decides todisability, while some other programs give
receive benefits starting at age 62 then theirindividuals benefits who have a partial-disability or
benefits are reduced a fraction of a percent forhave short-term disability, Social Security doesn't.
each month before your full retirement age. ToAn individual must meet certain earnings
find out how much an individual would lose if theyrequirements in order to be eligible for benefits.
retire at age 62 you can visit the social securityIndividuals must meet two different earnings
web site. An individual has the choice to retiretests to be eligible for disability benefits. The first
between the age of 62 and the full retirementtest is a "recent work" test which is based on the
age. An Individual qualifies for Social Securityindividual's age at the time they became disabled
benefits by earning Social Security credits whenand the second test a "duration of work" test to
they work in a job and pay Social Security taxes.show that they worked long enough under Social
The credits are based on the amount of theSecurity. An individual should apply for disability
individual's earnings and their work history is whatbenefits as soon as they become disabled
determines their eligibility for retirement, disabilitybecause it can take a long time to process the
and survivor's benefits when an individual dies. Forapplication for disability benefits. It typically takes
the year 2007 an individual receives one credit forabout 3 to 5 months. After the application is sent
$1,000 of earnings, up to the maximum of fourthe Social Security Administration will review their
credits per year. Each year the amount ofapplication and make sure they meet some basic
earnings needed to receive credits increasesrequirements for benefits such as whether they
slightly as the average earnings level increases.worked long enough to qualify and they will
The credits earned remain on the individual's Socialevaluate any current work activities. If these
Security record even if they change jobs or arerequirements are met then they will then send
without earnings for a while. There are specialyour application to the Disability Determination
rules that apply for Social Security coverage forServices office in their state. This agency makes
certain types of work.the decision for the SSA, they use their doctors
If an individual is self-employed then they earn theand disability specialists to ask their doctor
same amount of credits as employees howeverinformation about their condition, all facts in their
special rules apply if they have net earnings ofcase will be considered. They will also use
less than $400. For individuals in the military theyevidence from any hospital, doctor's office, clinics
earn credits the same way civilians do howeveror institutions that the individual has been treated
there is an opportunity to get additional creditsin order to obtain all other information.
under certain conditions. There are also specialLastly another option that the Social Security
rules that apply to individuals that have jobs thatAdministration offers is Survivor's benefits. People
include; domestic work, farm work or individualsusually only consider Social Security as paying
that work for the church or church-controlledretirement benefits however some of the Social
organizations that don't pay Social Security taxes.Security taxes that individuals pay go towards
There are also types of work that don't countproviding survivors insurance for workers and
toward Social Security. Most federal employeestheir families. The value of the survivors insurance
hired before 1984, because since January 1, 1983the individual has under Social Security is probably
all federal employees have paid the Medicaremore than the value of their individual life
hospital insurance part of the Social Security Tax.insurance. As an individual works and pays Social
Others who are affected by this are railroadSecurity taxes they earn credits toward their
workers who have more than 10 years ofSocial Security benefits. The number of years and
service. Employees of some state and localindividual needs to work depends on the age of
governments chose not to participate in Socialthe individual when they die. The younger a
Security also don't qualify and lastly childrenperson is the fewer the years they need to have
younger than the age of 21 who do householdworked, but no one needs to work more than 10
chores for a parent. An individual also may chooseyears in order to be eligible for Social Security
to delay retirement benefits. If this is the casebenefits. Under a special rule if an individual has
their benefits will be increased by a certainonly worked for a year and a half in the three
percentage depending on the year they wereyears just before death, benefits can be paid to
born and the increase will be added automaticallyindividuals and their spouses who are caring for
from the time they reach full retirement age untilthe children. Those who are eligible for survivor's
the time they decide to retire or until they reachbenefits include; the individual's widow/widower at
age 70, whichever comes first. One last thing toage 65 if they were born before January 1, 1940
consider about retirement benefits is if anor at age 67. Reduced widow benefits can be
individual works and gets benefits. An individualsobtained as early as age 60. The individual's widow
earnings in or after the month they reach fullor widower can receive benefits at any age if he
retirement age will not reduce their Social Securityshe takes care of their child who is eligible to a
benefits however their benefits will be reduced ifchild's benefit and is age 16 or younger or who is
their earnings exceed certain limits for the monthsdisabled. An individual's unmarried children who are
before they reach full retirement age.under age 18 or 19 if they are attending
If an individual works and starts receiving benefitselementary or secondary education full time. Their
before full retirement age then $1 in benefits willchildren can get benefits at any age if they were
be deducted for each $2 in earnings they havedisabled before age 22 and remain disabled. Under
above the annual limit. In 2007 the limit is $12,960.certain circumstances benefits could also be paid
In the year that the individual reaches fullto stepchildren, grandchildren, or adopted children.
retirement age then their benefits will be reducedDependent parents may also receive benefits if
$1 for every $3 they earn over a different annualthey are 62 or older. If an individual was divorced
limit, for 2007 its $34,440, until the month theytheir former spouse is eligible if they are 60 and
reach their full retirement age. Once the individualolder and if their marriage lasted longer than 10
reaches their full retirement age they can keepyears. If an individual's former spouse doesn't
working and their Social Security benefits won'tmeet the age requirement or length-of-marriage
be reduced no matter how much they earn.requirement but are caring for his/her child under
Another helpful benefit that the Social Securitythe age of 16 they can still be entitled.
Administration offers is disability benefits. The