What Social Security Benefits Are and Who Receives Them

Social Security benefits are monthly payments from the federal government based on your work history or your connection to someone who worked. The amount you receive depends on which type of benefit you're getting, how old you are, and how much you or your family member earned over time.

There are several types of Social Security payments. Retirement benefits go to people age 62 or older who worked and paid Social Security taxes. Disability benefits (SSDI) go to people under full retirement age who cannot work due to a medical condition expected to last at least 12 months. Survivor benefits go to family members of a worker who has died. Supplemental Security Income (SSI) is a separate needs-based program for people age 65 or older, blind, or disabled with very low income and resources.

The Social Security Administration (SSA) processes all these programs. You do not receive a lump sum — you get a set amount deposited into your bank account each month, usually on the same date.

Key Takeaways

  • Your monthly benefit amount is based on your lifetime earnings record, not on how much you need right now.
  • Retirement benefits can start as early as age 62, but waiting until age 70 increases your monthly payment by roughly 24 percent for each year you delay.
  • Disability and survivor benefits do not require you to reach retirement age, but they require proof that a medical condition prevents work or that you are the family member of a deceased worker.
  • You must report changes in your life — marriage, divorce, return to work, or a child aging out — because they can change your benefit amount or end your payments.
  • The SSA mails a statement each year showing your earnings history and estimated benefit amounts; you can also view this online through your my Social Security account.

How Your Benefit Amount Is Calculated

Social Security uses your Primary Insurance Amount (PIA), which is based on your 35 highest-earning years. The SSA adjusts older earnings for inflation so that a dollar you made in 1990 is counted fairly against a dollar you made in 2020. If you worked fewer than 35 years, zeros are counted for the missing years, which lowers your average.

Your actual monthly payment depends on when you start taking benefits. If you claim at age 62, your payment is reduced — typically by about 30 percent compared to waiting until your full retirement age. If you wait past your full retirement age (which ranges from 66 to 67 depending on your birth year), your payment increases by about 8 percent per year until age 70. After age 70, the payment does not increase further, so most people do not delay past that point.

For disability and survivor benefits, the SSA calculates a family maximum — a cap on the total amount all your family members can receive based on your earnings record. If multiple family members receive benefits on your record, each person's payment may be reduced so the total does not exceed this maximum.

Retirement Benefits and When You Can Claim

You can claim Social Security retirement benefits as early as age 62, but you must have worked and paid Social Security taxes for at least 10 years (40 quarters). The SSA counts a quarter for each $1,640 you earned in 2023 (this amount changes yearly). You do not need to have worked all 40 quarters recently — they can be spread across your entire working life.

Your full retirement age — the age at which you receive your full, unreduced benefit — depends on your birth year. For people born in 1943 or later, it ranges from 66 to 67. You can find your exact full retirement age on your Social Security statement or by calling the SSA at 1-800-772-1213.

If you are still working when you claim benefits before full retirement age, the SSA reduces your payment by $1 for every $2 you earn above an annual limit (in 2024, that limit is $23,400). Once you reach full retirement age, there is no earnings limit — you can work and receive your full benefit.

Disability Benefits (SSDI) and Medical Requirements

Social Security Disability Insurance (SSDI) pays monthly benefits to people who cannot work because of a medical condition. The condition must be severe enough to prevent substantial work activity and must be expected to last at least 12 months or result in death. You do not have to be completely unable to work — you just cannot earn more than $1,550 per month (in 2024; this amount changes yearly).

To receive SSDI, you must have worked long enough and recently enough to have earned enough Social Security credits. The number of credits required depends on your age when you become disabled. Generally, younger workers need fewer credits. The SSA will tell you how many credits you have when you apply.

The SSA sends your case to a state Disability information Services office, which reviews your medical records, work history, and age. This process typically takes 3 to 6 months. If you are denied, you can request reconsideration, then a hearing before an administrative law judge. Many people are denied on the first application and approved on appeal.

Survivor Benefits for Family Members

When a worker who paid Social Security taxes dies, their family members may receive monthly payments. These include the worker's widow or widower (at age 60 or older, or at any age if caring for a child under 16), unmarried children under age 19 (or 19 if still in high school), and dependent parents age 62 or older.

The amount each family member receives is a percentage of what the deceased worker would have received at full retirement age. The total paid to all family members cannot exceed a family maximum, usually 150 to 180 percent of the worker's full retirement benefit.

To claim survivor benefits, family members must contact the SSA with a copy of the death certificate and proof of their relationship to the worker. The SSA processes these claims quickly because the need is often immediate.

Supplemental Security Income (SSI) for Low-Income Individuals

Supplemental Security Income (SSI) is a separate program from Social Security retirement and disability. It provides monthly payments to people age 65 or older, blind, or disabled who have very low income and few resources. Unlike SSDI, SSI does not require a work history — it is based on financial need.

To receive SSI, your countable income must be below a certain limit (in 2024, the federal limit is $943 per month for an individual, though some states add extra money). Your countable resources — cash, bank accounts, stocks, and some property — must be below $2,000 for an individual or $3,000 for a couple. Your home and one vehicle are not counted.

SSI also makes you automatically may be able to access for Medicaid in most states. If you receive both SSI and Social Security retirement or disability benefits, the SSI payment fills the gap between your Social Security amount and the SSI limit.

Changes You Must Report to Social Security

Your benefit amount or may be able to access can change if your life circumstances change. You must report to the SSA if you marry, divorce, or remarry; if a child in your care turns 16 or leaves your care; if you return to work or your earnings change; if you move out of the country; or if a family member receiving benefits on your record dies.

You can report changes by calling 1-800-772-1213, visiting your local SSA office, or logging into your my Social Security account online. Some changes take effect immediately; others are processed over several months. If you do not report a change and continue receiving benefits you are no longer due, the SSA will eventually ask you to repay the overpayment.

If you work while receiving retirement benefits before full retirement age, you must report your earnings each year. The SSA uses this information to adjust your payment if you earn above the annual limit.

How to View Your Earnings Record and Benefit Estimate

The SSA mails a Social Security Statement to everyone age 60 or older who is not yet receiving benefits. The statement shows your earnings history, the credits you have earned, and an estimate of your retirement, disability, and survivor benefits. You can also create a my Social Security account online at ssa.gov to view this information anytime.

Your earnings record is important because it is the foundation for your benefit calculation. If you see an error — a year where you earned money but it is not shown, or an amount that looks wrong — you can contact the SSA to correct it. You have a limited time to correct errors from past years, so it is worth checking your record regularly.

Your benefit estimate assumes you will continue working at your current earnings level until your full retirement age. If you plan to retire earlier or later, or if your earnings will change significantly, your actual benefit will be different.

Frequently Asked Questions

Can I receive Social Security benefits while I'm still working?

Yes, but if you claim before full retirement age, your benefit is reduced by $1 for every $2 you earn above the annual limit. Once you reach full retirement age, you can work and earn any amount without a reduction to your benefit. If you are receiving disability benefits (SSDI), you can earn up to $1,550 per month without losing benefits, and you have a nine-month trial work period where you can test your ability to work.

What happens to my benefits if I move to another country?

You can receive Social Security retirement, disability, and survivor benefits while living outside the United States, with some exceptions. Citizens of certain countries cannot receive benefits while living there. You must notify the SSA before you leave and may need to complete a questionnaire each year to confirm you are still due benefits. Contact the SSA before moving to understand the rules for your specific situation.

How do I replace a lost Social Security card?

You can request a replacement card online through ssa.gov if you have a my Social Security account, by mail, or in person at your local SSA office. You will need to show proof of citizenship or legal residency, proof of age, and proof of identity. There is no charge for a replacement card. Processing usually takes 1 to 2 weeks if you apply online or in person.

What is the difference between SSDI and SSI?

SSDI (Social Security Disability Insurance) is based on your work history and Social Security taxes you paid. SSI (Supplemental Security Income) is based on financial need, not work history. SSDI can pay benefits to disabled workers of any age and to family members. SSI is only for people age 65 or older, blind, or disabled with low income and resources. Both programs require medical proof of disability, but the financial rules are different.

Can I change my mind after I start receiving benefits?

If you claimed retirement benefits and changed your mind within 12 months, you can withdraw your application, repay all benefits you received, and reapply later at a higher amount. After 12 months, you cannot withdraw. However, you can request a one-time "deemed filing" change if you meet certain conditions. Contact the SSA to discuss your specific situation.