5 Facts about Social Security

5 Facts about Social Security

Social Security
SSDA USA is here with 5 facts about social security.

The Social Security program is incredibly well put together; however, its many components and rules can be a bit overwhelming and even somewhat complicated to understand. Knowing some of the facts about Social Security should help you understand the Social Security program better.

Five Facts About Social Security

The following are five facts about Social Security that you should know. They will give you a better understanding of the program and why it’s so important.

Everyone can earn Social Security benefits

To be eligible for Social Security retirement benefits, you’ll need to earn 40 credits of coverage at a minimum income of $1,360 per quarter. You can earn four credits a year, which means that it takes ten years to earn 40 credits. Once you’ve worked ten years and earned the minimum income, you’ll qualify for Social Security retirement benefits. Additionally, the minimum is low enough so that you could earn your credits simply doing seasonal work.

Social Security is a progressive and guaranteed benefit

Once you begin collecting your Social Security retirement benefits, you continue to receive them. They are also progressive, which means that they will keep up with inflation. This prevents Americans from falling into poverty the older that they get. Additionally, lower earners who retire at 65 will be given around half of their previous earnings. Higher earnings will only receive about a third of their previous earnings; however, because they were higher earnings their benefits are more likely to be greater in size.

Americans are dependent on Social Security

Americans rely on their Social Security retirement benefits greatly. It’s estimated that roughly 40 percent of all Americans over the age of 65 would be poor if it weren’t for Social Security. This is in part because retirement benefits account for the majority of their income. For around 33 percent of elderly Americans, their Social Security retirement benefits account for almost 90 percent of their total income.

Social Security provides life and disability insurance

Workers not only earn retirement benefits as they work, they also earn life insurance and disability insurance protection when they make payroll tax contributions to the Social Security program. Although most Americans collect Social Security in the form of retirement benefits, 20 percent of Americans collecting Social Security benefits are receiving disability insurance or are survivors of deceased workers.

In order to receive benefits, you need to file for them

One of the common misconceptions that people have about Social Security benefits is that they will begin automatically receiving them once they reach a certain age. You actually need to provide notice to the Social Security Administration in order to begin receiving benefits.

To avoid an income gap, you should file as early as you can. It will take around four months for you to begin receiving benefits after you file. Keep in mind that you can begin collecting retirement benefits before age 66 if you choose to do so; however, your benefits will be reduced the earlier you choose to collect them (the earliest age you can begin collecting retirement benefits is at 62).

These are five facts about Social Security that you should know. To learn more about Social Security benefits, be sure to schedule a free consultation with SSDA USA. Feel free to reach out to us anytime by calling us at 602-952-3200 or by taking advantage of our LiveChat feature.

This is attorney advertising. SSDA, LLC is a group of attorneys that pursues claims for Social Security Disability benefits on behalf of its clients against the Social Security Administration. SSDA, LLC is in no way a part of the Social Security Administration. Further, the information on this blog is for general information purposes only. Nothing herein should be taken as legal advice. This information is not intended to create, and receipt or viewing does not constitute, a representative-client relationship.

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