What Is Social Security Benefit?
Social Security Benefit is a service that is administered by the Social Security Administration in the United States. The system of social security benefits is seen as an additional help to people who have retired from their job or find it difficult to work owing to any kind of disability.
The system is also beneficial to the legal dependents of the person receiving the help, like their spouse, children, or even their parents, even if the person receiving the benefits is no more.
The program mainly aims at people who are of old age, people who are survivors, and people who are disabled. The original Social Security Act dates back to 1935 and was signed by then-president Franklin Roosevelt. The current law had been through different amendments and changes through time. The criteria for being qualified for the benefits are issued by the Social Security Administration (SSA).
Who Is Eligible For Social Security Benefits?
Social Security benefits are a way for the government to provide assistance to different categories of people who find it difficult to generate an income through regular work. Elderly people who have retired from the service and are not able to work are the main category of people who are entitled to this benefit. But it seems that most people think that only elderly people are eligible for the benefit.
Other than elderly people two other categories of people are also eligible for the benefit. This category includes people who are disabled people and survivors are also entitled to this benefit from the government.
That is just a broader category of people who are eligible for the work but the category does go on diving further. These subcategories include people like aged widows, aged surviving divorced spouses, disabled widows and widowers, parental or maternal orphans, and also widows or widowers who are caring for minor or disabled children.
Must Read: Who Should Pay Taxes On Their Social Security Benefits?
Not everyone who falls into the three different categories is not eligible for the benefit. In order to be qualified for the special security benefit, you should pay an amount into the social security program, during your working time. By paying these amounts, you will earn credit.
The credit will depend upon the amount paid and this credit is one of the major factors that determine the qualification of a person. If you are able to achieve 40 credits by paying the amount, then you will be entitled to social security benefits.
The amount of money that is receded by each person afterward is also based on different factors. The amount you receive will be calculated based on factors like the year that you were born, your earnings history and details, and also the age at which you started to claim Social Security.
Types Of Social Security Benefits
- Survivor Benefits
The survivor benefit comes into effect after the passing away of a person’s spouse. When a spouse dies, the surviving spouse has the right to file for survivor benefits. This can be done as early as 60 years old. It should be noted that this benefit will be reduced if they apply for the survivor benefit before reaching their full retirement age.
After the age of 62, the spouse also has the right to switch to their benefit if it is more than that of the spouse. The rules regarding the time of marriage and time together with the spouse can be quite confusing so it must be made sure to have a good understanding of these laws and look at them more clearly.
- Spousal Benefits
This provision allows a couple to share the available benefits of their spouse. If one of the spouses was not able to achieve the needed credit during their working days or who didn’t work can also receive the social security benefits starting at the age of 62 based on the ford of their spouse.
The spousal benefit can also be reduced if they apply before reaching the age of full retirement. The highest amount anyone can revive as a benefit through this scheme is half the amount that is earned by their spouse.
How Does Social Security Benefits Work?
For anyone to be eligible for the social security benefit, that person should pay for the program during their working days. The person then should be able to achieve 40 credits by paying the amount and a person can earn up to four credits per year.
The amount that a person needs to pay to attain credit will be determined based on the economic conditions of the authority. As for 2023, the amount that should be paid is $1,640. In 2022, each person who was eligible for a social security benefit received a sum of $3,345. There is expected to be a rise in the amount that will be given out in 2023 which is expected to be $3,627.
As per the records available, around 65 million people received these benefits from the government in the year 2020.
