The Three Main Types of Social Security Payments

Social Security is a federal insurance program that pays monthly cash to workers who have retired, to people who cannot work because of disability, and to family members of workers who have died. The program does not pay everyone the same amount — your payment depends on how much you earned during your working years and when you start collecting.

The three payment types are retirement benefits (for workers age 62 and older), disability benefits (for workers under full retirement age who cannot work, and their family members), and survivor benefits (for family members of a worker who died). You receive one type at a time, though you may switch between them under certain rules.

Social Security is not means-tested, meaning your income or assets do not disqualify you. However, if you work while collecting retirement benefits before your full retirement age, your payment is reduced by $1 for every $2 you earn above a yearly limit (the limit changes each year). After you reach full retirement age, you can earn any amount without a reduction.

Key Takeaways

  • Social Security pays monthly cash based on your earnings record, not on how much money you have now.
  • Retirement benefits start as early as age 62, but your monthly payment is smaller if you claim before your full retirement age (which ranges from 66 to 67 depending on your birth year).
  • Disability benefits go to workers who cannot work due to a medical condition expected to last at least 12 months, plus certain family members.
  • Survivor benefits pay your spouse, children, and parents if you die, even if you have not yet retired.
  • You need a Social Security number and a work history to receive any of these payments.

How Much You Receive Each Month

Your monthly payment is calculated from your Primary Insurance Amount (PIA), which is based on your 35 highest-earning years. Social Security uses a formula that replaces a higher percentage of lower earnings and a lower percentage of higher earnings, so the program replaces more of your income if you earned less during your career.

The average retirement benefit in 2024 is roughly $1,900 per month, but this varies widely. Someone who earned minimum wage most of their life receives less than someone who earned the maximum taxable wage. You can view your own estimated benefit by creating an account at ssa.gov and viewing your Social Security Statement.

If you claim retirement benefits at 62, your payment is about 30 percent lower than if you wait until your full retirement age. If you wait until age 70, your payment is about 24 percent higher than at full retirement age. This trade-off means that waiting longer gives you a larger monthly check, but claiming earlier means you collect payments for more years overall.

Retirement Benefits: Age, Timing, and Payment Amounts

You can claim retirement benefits as early as age 62, but your full retirement age depends on your birth year. For people born between 1943 and 1954, full retirement age is 66. For those born between 1955 and 1960, it rises gradually to 67. For anyone born in 1960 or later, full retirement age is 67.

The difference between claiming at 62 and claiming at your full retirement age is substantial. If your full retirement age is 67 and your full benefit is $2,000 per month, claiming at 62 would give you roughly $1,400 per month for life. Claiming at 67 gives you $2,000 per month. The break-even point — where total lifetime benefits are equal — occurs around age 80 for most people.

If you are married, you may be able to claim a spousal benefit based on your spouse's earnings record, even if you did not work much yourself. The spousal benefit is up to 50 percent of your spouse's full retirement age benefit, but only if you have reached your full retirement age. If you claim before full retirement age, the spousal benefit is reduced.

Disability Benefits and How They Work

Social Security disability benefits (SSDI) go to workers under full retirement age who have a medical condition that prevents them from working and is expected to last at least 12 months or result in death. You do not have to be completely unable to work — you must be unable to earn more than $1,550 per month (in 2024; this amount changes yearly).

To receive disability benefits, you must have worked long enough and recently enough to have earned enough work credits. Most people need 40 credits total, with at least 20 earned in the 10 years before they become disabled. Younger workers need fewer credits. You earn one credit for each $1,730 of wages or self-employment income in 2024 (the amount changes yearly), up to four credits per year.

The application process for disability takes time. Social Security receives your application, sends it to your state's Disability information Service, which obtains your medical records and makes a decision. This usually takes 3 to 5 months. If you are denied, you can request reconsideration, then appeal to an administrative law judge. Many people are denied initially and approved on appeal.

Family members of a disabled worker can also receive benefits: a spouse age 62 or older, a spouse of any age caring for the worker's child under 16, and unmarried children under 19 (or 22 if in school full-time). Each family member receives up to 50 percent of the worker's benefit, though the total family payment is capped at 150 to 180 percent of the worker's benefit.

Survivor Benefits for Family Members

If you die, your family members may receive monthly payments based on your earnings record, even if you have not yet retired. Your spouse age 60 or older receives a reduced benefit; your spouse at any age caring for your child under 16 receives up to 75 percent of your benefit; your unmarried children under 19 (or 22 if in school) receive up to 75 percent each; and your parents age 62 or older who depended on you for income may receive benefits.

The total amount paid to your family is capped at 150 to 180 percent of what you would have received at your full retirement age. This means if you had a large family, each member's payment would be reduced proportionally so the total does not exceed the cap.

Your family does not have to apply immediately after your death. Survivor benefits can be claimed at any time, and payments are made back to the month you became may have access to (usually the month of death). However, the sooner your family reports your death to Social Security, the sooner payments can begin.

Work Credits and Your Earnings Record

Social Security tracks your earnings through your Social Security number. Each year you work and pay Social Security taxes, you earn work credits based on your wages or self-employment income. In 2024, you earn one credit for each $1,730 of earnings, up to four credits per year.

Most people need 40 credits (roughly 10 years of work) to receive retirement benefits. You need fewer credits for disability or survivor benefits, depending on your age when you become disabled or die. You can view your earnings record and credits on your Social Security Statement at ssa.gov.

If you worked under different names (for example, before marriage), make sure Social Security has linked all your earnings to your current Social Security number. Earnings under a different name do not count toward your benefit unless they are properly recorded. You can correct your earnings record by contacting Social Security with proof of the name change.

When Payments Start and How You Receive Them

Once you are approved for benefits, Social Security pays you monthly, usually on the same day each month. The payment day depends on your birth date: people born on the 1st through the 10th are paid on the second Wednesday of the month, those born on the 11th through the 20th on the third Wednesday, and those born on the 21st through the 31st on the fourth Wednesday.

You can receive your payment by direct deposit to a bank account, through a Direct Express debit card (a prepaid card issued by Social Security), or by check mailed to your address. Direct deposit is the fastest and most secure method. You set up direct deposit when you apply or by contacting Social Security later.

If you move, change your bank account, or have other changes in your life, you must report them to Social Security. You can report changes online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. Failing to report changes can delay or stop your payments.

Frequently Asked Questions

Can I receive Social Security if I did not work in the United States?

You need a work history in the U.S. Social Security system to receive benefits. If you worked in another country, you may be able to count those years under a totalization agreement between the U.S. and that country. Contact Social Security to learn about your country has an agreement.

What happens to my benefits if I work after I start collecting?

If you claim retirement before your full retirement age and earn more than the yearly limit (roughly $23,400 in 2024), your benefit is reduced by $1 for every $2 you earn above the limit. Once you reach full retirement age, you can earn any amount without a reduction. The limit changes each year.

Can I change my mind after I claim benefits?

If you claim retirement benefits and change your mind within 12 months, you can withdraw your application and repay what you received. This allows you to claim again later at a higher rate. After 12 months, you cannot withdraw, but you can suspend your benefits at full retirement age and let them grow until age 70.

Do I pay taxes on Social Security benefits?

It depends on your total income. If your combined income (adjusted gross income plus half your Social Security benefit) exceeds certain thresholds, up to 85 percent of your benefits may be taxable. Single filers with combined income over $25,000 and married filers over $32,000 may owe taxes on their benefits.

What if Social Security made a mistake on my benefit amount?

Contact Social Security immediately if you believe your benefit is wrong. You can request a detailed explanation of how your benefit was calculated. If Social Security made an error, they will correct it and pay you any back payments owed. You have a limited time to request corrections, so act as soon as you notice a problem.