Introduction to social benefits

The Social Security Administration can offer benefits in three different categories, including: when you retire, when you become incapacitated for work, and finally when you die. Information about social benefits can be found on the website of the social security administration. The age to receive full retirement benefits has been 65 years for many years now, but for people born after 1938, it gradually increases to the age of 67 for people born after 1959. A person can already retire at the age of 62. However, if a person decides to receive benefits from the age of 62, their benefit will be reduced by a fraction of a percent for each month before your full retirement age. To find out how much a person would lose if he retires at age 62, you can visit the Social Security website. Someone has the choice to retire between the age of 62 and the full retirement age. An individual is eligible for Social Security benefits by earning Social Security credits when working in a job and paying Social Security taxes.

The credits are based on the amount of the individual’s income and their employment history determines what qualifies for retirement, disability and survivors’ benefits when an individual dies. For the year 2007, a person receives one credit for $ 1,000 in income, up to a maximum of four credits per year. Each year, the amount required to receive credits increases slightly as the average profit level increases. The earned credits remain on the individual’s social security record, even if they change jobs or have no income for a while. Special rules for social security apply to certain types of work.

If a person is self-employed, they earn the same number of credits as employees, but special rules apply if they have a net income of less than $ 400. For military personnel, they earn credits the same way as civilians, but there is a possibility to receive extra credits under certain conditions. There are also special rules that apply to people who have jobs, including; housework, farmwork, or individuals who work for the Church or Church-controlled organizations that do not pay social security taxes.

There are also types of work that do not count for social security. Most federal workers were hired before 1984, since since January 1, 1983, all federal workers paid the Medicare hospital insurance portion of social security tax. Others affected by this are railway workers who have been employed for more than 10 years. Employees of some state and local governments have opted not to participate in social security, and are not eligible, and finally children under the age of 21 who perform household duties for a parent. An individual can also choose to defer retirement benefits. If this is the case, their benefits will increase by a certain percentage depending on the year they were born and the increase will be added automatically from the moment they reach retirement age until they decide to retire or until they reach the age of 70, whichever comes first. One last thing to consider about retirement benefits is whether a person is working and receiving benefits. An individual’s income in or after the month of reaching full retirement age does not decrease his social security benefits, but their benefits will be reduced if their income exceeds certain limits for the months before reaching full retirement age.

If a person works and starts receiving benefits before full retirement age, $ 1 in benefits will be deducted for every $ 2 in income they have above the annual limit. In 2007, the limit is $ 12,960. In the year the person reaches retirement age, their benefit will be reduced by $ 1 for every $ 3 they earn over any other annual limit, from 2007 it will be $ 34,440, until the month they reach full retirement age. Once the person reaches retirement age, he can continue working and his social security benefits will not be reduced, regardless of how much he earns.

Another useful benefit offered by the social security administration is disability benefits. The Social Security Administration pays disability benefits in two different ways: one is through Social Security Disability Program Insurance, the second is through Supplementary Income Program (SSI). Click on the given link for information about the SSI disability program. Social security pays benefits to people who are unable to work because they have a medical condition that is expected to last at least a year or cause death. Federal law requires such a strict definition of disability, while some other programs offer individual benefits to those with partial disabilities or short-term disabilities, but Social Security does not. A person must meet certain income requirements to be eligible for benefits. Individuals must pass two different profit tests to be eligible for disability benefits. The first test is a “recent work” test based on the age of the individual when they became incapacitated for work and the second test is a “duration of work” test to show that they have been working long enough under social security. A person must apply for disability benefit as soon as they become incapacitated because it can take a long time to process an application for disability benefit. This usually takes 3 to 5 months. After the application is submitted, the Social Security Administration will review their application and ensure they meet a number of basic requirements for benefits, such as whether they have worked long enough to qualify and evaluate all current work. If these requirements are met, they will send your application to the disability determination services office in their state. This agency makes the decision for the SSA, they use their doctors and disability specialists to ask their doctor 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 person has been treated to obtain any other information.

Finally, another option offered by the Social Security Administration is the benefits of Survivor. People usually think of social security only as paying retirement benefits, but part of the social security taxes that individuals pay goes to providing survival insurance for workers and their families. The value of the survivor’s insurance that the individual has under social security is probably more than the value of his individual life insurance. If an individual works and pays social security taxes, they earn credits for their social security benefits. The number of years and individual needs to work depends on the age of the individual at death. The younger a person is, the fewer years they have to work, but no one has to work more than 10 years to qualify for social benefits. If a person has only worked a year and a half in the three years just before death, a special rule can be imposed. The benefit can be paid to persons and their spouses who care for the children. Those eligible for survivors’ benefits include; the widow / widower of the individual at the age of 65 if they were born before January 1, 1940 or at the age of 67. Reduced benefits for widows can be obtained as early as age 60. The individual’s widow or widower can receive benefits at any age if he / she cares for their child who is eligible for child benefit and is 16 or younger or disabled. The unmarried children of a person who are under the age of 18 or 19 if they are in full-time primary or secondary education. Their children can receive benefits at any age if they were incapacitated for work before 22 and remain incapacitated for work. Under certain circumstances, allowances may also be made to stepchildren, grandchildren or adopted children. Dependent parents can also receive benefits if they are 62 or older. If a person is divorced, his former spouse is eligible if he is 60 or older and their marriage has lasted more than 10 years. If a person’s ex-spouse does not meet the age or marriage requirement, but for his / her child under 16, he / she can still claim.

Source by Ashley Gurdon