The Social Security Administration can provide benefits in three different categories, including; when you retire, when you become disabled, and finally when you die. Information about Social Security benefits can be found on the Social Security Administration website. The age to receive full retirement benefits has been 65 for many years now but for persons born after 1938 it gradually increases until it reaches the age of 67 for persons born after 1959. A person may start receiving retirement benefits at 62 years of age, but if someone decides to receive benefits starting at age 62 then their benefits are reduced by a fraction of a percent for each month before your full retirement age. To find out how much someone will lose if they retire at age 62, you can visit social security websites. An individual has the option of retiring between the age of 62 and the age of full retirement. A person qualifies for Social Security benefits by getting Social Security credit while they are working and paying Social Security taxes.
Credit is based on an individual’s total income and work history which determines their eligibility for retirement, disability, and bequest benefits when an individual dies. For 2007 an individual received one credit for $1,000 of earnings, up to a maximum of four credits per year. Each year the amount of income required to receive credit increases slightly as the average income level increases. The credit earned remains on the individual’s Social Security record even if they change jobs or are temporarily without income. There are specific rules that apply to Social Security coverage for certain types of work.
If someone is self-employed then they get the same amount of credit as an employee, but special rules apply if they have a net income of less than $400. For individuals in the military, they get credit in the same way as civilians, but there are opportunities for additional credit under certain conditions. There are also specific rules that apply to individuals who have jobs which include; domestic workers, farm workers or individuals who work for a church or church-controlled organization who do not pay Social Security taxes.
There are also types of work that are not counted in Social Security. Most federal employees were employed before 1984, because since January 1, 1983 all federal employees had paid the Medicare hospital insurance portion of the Social Security Tax. Other people affected by this are railroad workers who have worked for more than 10 years. Employees of some state and local governments choose not to participate in Social Security nor are they eligible and finally children under the age of 21 who do household chores for their parents. An individual can also choose to defer retirement benefits. If so, their benefits will increase by a certain percentage depending on the year they were born and the increase will be added automatically from the time they reach full retirement age until they decide to retire or until they reach 70 years of age. which one comes first. One last thing to consider about retirement benefits is if a person is working and has benefits. Individuals’ earnings on or after the month they reach full retirement age will not reduce their Social Security benefits, but their benefits will decrease if their income exceeds a certain threshold for the months before they reach full retirement age.
If a person is employed and begins receiving benefits before full retirement age, then $1 of benefits will be deducted for every $2 of income they have over the annual limit. In 2007 the limit was $12,960. In the year that individuals reach full retirement age, their benefit will be reduced by $1 for every $3 they earn over the different annual limits, for 2007 to $34,440, until the month they reach full retirement age. Once individuals reach full retirement age, they can continue to work and their Social Security benefits will not decrease regardless of their income.
Another useful benefit that the Social Security Administration offers is disability benefits. The Social Security Administration pays disability benefits in two different ways, one through Social Security’s disability program insurance, the second is through the Supplemental Security Income (SSI) program. To find out information about the SSI disability program, please click on the link provided. Jamsostek provides benefits to people who are unable to work due to a medical condition that is expected to last at least one year or result in death. Federal law requires such a strict definition of disability that while some programs provide benefits to individuals with partial or short-term disability, Social Security does not. An individual must meet certain income requirements to be eligible for benefits. Individuals must meet two different income tests to qualify for disability benefits. The first test is a “last job” test which is based on an individual’s age at the time they become disabled and the second is a “duration of employment” test to show that they worked long enough under Social Security. A person should apply for disability benefits as soon as they become disabled because it can take a long time to process a disability benefits application. It usually takes about 3 to 5 months. Once the application is sent, the Social Security Administration will review their application and ensure they meet some of the basic requirements for benefits such as whether they worked long enough to qualify and they will evaluate their current work activity. If these requirements are met they will send your application to the Disability Determination Services office in their state. This body makes decisions for the SSA, they use their doctor and disability specialist to ask their doctor for information about their condition, all the facts in their case will be considered. They will also use evidence from any hospital, doctor’s office, clinic or institution that the individual has been treated for all other information.
Lastly, another option offered by the Social Security Administration is Survivor benefits. People usually only think of Social Security as paying retirement benefits, but some of the Social Security taxes that individuals pay are used to provide survivors’ insurance for workers and their families. The insurance value of an individual’s survivorship under Social Security may be more than the value of their individual’s life insurance. As an individual works and pays Social Security taxes, they get credit towards their Social Security benefits. The number of years and the individual’s need to work depends on the individual’s age at death. The younger a person is, the fewer years they need to work, but no one needs to work more than 10 years to qualify for Social Security benefits. Under special rules if a person has worked for only one and a half years in the three years before death, benefits can be paid to the individual and his or her spouse who cares for the children. Those who are eligible for survivor benefits include; individual widows/widowers at age 65 if they were born before 1 January 1940 or at age 67. Reduced widow benefits can be obtained at age 60. Individual widows or widowers can receive support at any age if the s/he takes care of their child who is eligible for child support and is 16 years of age or younger or who has a disability. Unmarried individual children under the age of 18 or 19 if they are attending full-time primary or secondary education. Their children can get benefits at any age if they are disabled before the age of 22 and remain disabled. In certain circumstances alimony may also be paid to stepchildren, grandchildren or adopted children. Dependent parents may also receive benefits if they are 62 years or older. If someone is divorcing, the ex-spouse is eligible if they are aged 60 or over and if their marriage lasted more than 10 years. If a person’s ex-spouse does not meet the age or length of marriage requirements but cares for children under the age of 16, they may still be eligible.
