The Ultimate Guide to Social Security Benefits: The Absolute Essentials

If you already receive or think you are eligible for social security benefits, you probably have many questions. How do I qualify? What are my benefits? How do I keep them? Well, wonder no longer. Social Security Disability Advocates USA is here, and we put together this comprehensive guide to the critical social security elements. Here, you’ll find the essentials of social security retirement and disability benefits, all neatly organized in one place. So take a gander at this guide from SSDA USA.

All About Retirement Benefits

To begin, let’s briefly go over what retirement benefits actually are.

A Quick Intro to Retirement

When you work, you contribute towards something called the Federal Insurance Contributions Act (FICA) tax. This tax helps fund social security programs. Because social security retirement is a pay-as-you-go program, this means that when you are working and contributing towards this tax, you are helping other people who currently receive their retirement benefits. When you reach your retirement age, you will receive your benefits from people who are still working.

As you work, you also earn social security work credits. These credits are necessary to receive retirement benefits. In 2020, you receive one work credit for every $1,410 you earn, up to a maximum of 4 credits per year. To receive retirement benefits, you must have 40 work credits, or a minimum of 10 years’ work.

The Tricky Stuff About Retirement

There are plenty of tricky things to keep in mind before claiming retirement benefits. Here are the ones most people concern themselves with.

Age and Retirement Strategy

The most impactful factor to consider prior to retirement, perhaps, is your age. Assuming you meet the work credit requirement, you can take your retirement as early as age 62. However, be careful! Keep in mind, 62 is not your full retirement age, and taking your retirement early results in permanent reduction of your lifetime benefits.

Your full retirement age depends on the year you were born, but most people’s full retirement age is around 66 to 67. You do not have to receive your retirement benefits when you reach full retirement age, though. Just as taking early retirement decreases your benefits, taking a delayed retirement increases your benefits.

For each year after your full retirement age that you delay taking benefits, the Social Security Administration increases your benefits by approximately 8% up until age 70. After age 70, your benefits no longer incrementally increase, so there is no longer a benefit in waiting to take your retirement benefits.

You may ask yourself, “Does this mean I have to work until I’m 70?” The answer is that it depends. Every individual’s situation is unique. If you need your benefits more immediately, you could consider taking benefits at full retirement age or earlier and stop working altogether.

If you think you’d rather wait for your benefits to be at their maximum value, you can always wait. In addition, continuing to work after your full retirement age can still contribute to your lifetime earnings, which could potentially increase your benefits. It all depends on what you value most. If you have questions, contact Social Security Disability Advocates USA.

Family Retirement Benefits

Your family can benefit from your retirement, as well. Some eligible family members include:

• Spouses that are age 62 or older,
• Spouses younger than age 62 that are taking care of your child that’s under age 16 or disabled,
• Former spouses that are age 62 or older,
• Children up to age 18, or up to age 19 if they are still in school and haven’t graduated, and
• Disabled children, no matter the age, as long as they acquired a disability before age 22.

No matter when you choose to retire or what benefits your family receives, you should always file for Medicare at age 65! Even if you don’t retire right away, delaying your application for Medicare can cost you much more in the long run.

All About Disability Benefits

Social security doesn’t cover only retirement. No, it also helps those that are disabled, too. There are two main programs that help disabled individuals: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Let’s go over them one at a time.

Social Security Disability Insurance (SSDI)

Social Security Disability Insurance (SSDI) is a program funded by the Social Security Trust Fund (e.g. FICA taxes) that aids people who meet Social Security’s definition of disability. Meeting the Social Security Administration’s definition of disability is one of the most critical social security elements and is as follows:

• You have a condition that prevents you from working and earning Substantial Gainful Activity (SGA), and
• The condition has lasted/will last for no less than one year, or will result in your death.

Once you meet the disability definition, you must meet other requirements, too. As is the case for retirement benefits, SSDI requires a certain amount of work credits. The credits required change based on your age and when you acquired your disability, and the amount you receive depends on your work history.

Family Disability Benefits

Family members can receive benefits under your SSDI. Here are some of the ways your family members can qualify for benefits.

• Spouses
  • If your spouse is age 62 or older, they may qualify for SSDI benefits.
  • If your spouse of any age cares for your child that is disabled or younger than 16 years old, they, too, may qualify for benefits under your record.
• Divorced Spouses
  • If your ex-spouse was married to you for ten years, and
  • They are at least 62 years old, and
  • They are currently unmarried, and they’re
  • Not eligible for equal or higher paying benefits based on their own or someone else’s social security record, they may qualify for SSDI benefits.
• Children
  • Children must be unmarried and
  • Under age 18, or 18-19 years old and a full-time student (not enrolled in anything beyond high school), or 18 or older and disabled before age 22.

The total family benefits (including your own benefits) is anywhere from 150% to 180% of the benefits you alone receive. If any of your family members receive benefits, they will receive an amount that is proportional and limited to the designated percentage.

Supplemental Security Income (SSI)

Supplemental Security Income (SSI) is a program funded by general fund taxes and doesn’t dip into the Social Security Trust Fund or FICA tax funds. This program is strictly need based and helps those who are impoverished and blind, disabled, or elderly (at least age 65). This means your work history isn’t as crucial as it is for retirement or SSDI benefits.

To qualify for SSI, you must first have no more than $2,000 in assets and a severely limited income. The income limit is based on the Federal Benefit Rate (FBR), which is the SSI income limit plus the maximum monthly SSI payment. For 2020, the FBR is $783 per month. If your filing for couple’s benefits, the FBR is $1,175. The good news is that the Social Security Administration doesn’t count some of your income and resources when it calculates whether you qualify.

SSI is different from SSDI in a few ways. First, your family doesn’t necessarily qualify for benefits just because you do; SSI is a more individual-focused program. Also, the method by which it’s funded and the process by which you qualify differ slightly, even though the forms are basically identical. SSI offers its beneficiaries Medicaid, a health care program that helps low-income people pay for doctor visits and other medical costs.

It is possible to receive both SSDI and SSI concurrently, though you have to meet special requirements for this to happen.

One thing to keep in mind: when applying for social security benefits of any kind, you always have the right to representation. Don’t trust the government to do right by you; contact an SSDA USA attorney to see what benefits you qualify for.

Want to Know More Critical Social Security Elements?

If you want to know more critical social security elements, contact SSDA USA today! We are always on the line and standing by to address all your social security questions and concerns.

Give us a call anytime at 602-952-3200. Additionally, you can feel free to contact us online and check out our LiveChat feature. Don’t keep your questions to yourself. Contact an SSDA USA attorney today!

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.