What Social Security Is

Social Security is a federal insurance program run by the Social Security Administration (SSA). It 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. You fund it through payroll taxes during your working years, and those taxes go into a pool that pays current beneficiaries.

The program has three main parts: retirement benefits, disability benefits, and survivor benefits. Retirement is the largest — most people know Social Security as a retirement program — but disability and survivor payments serve millions too. The amount you receive depends on how much you earned during your working life and when you start taking payments.

Key Takeaways

  • Social Security requires you to have worked and paid Social Security taxes for a minimum number of years — usually 10 years or 40 work credits — to receive any benefit.
  • You can start taking retirement benefits as early as age 62, but your monthly payment will be smaller than if you wait until your full retirement age (between 66 and 67 for most people born after 1954).
  • Disability benefits go to people under full retirement age who cannot work due to a medical condition expected to last at least 12 months or result in death.
  • Survivor benefits pay your spouse, ex-spouse, and children if you die, even if you have not yet retired.
  • You must contact the Social Security Administration directly to start receiving benefits — you cannot receive them automatically.

Retirement Benefits and When You Can Start

You can begin taking Social Security retirement benefits at age 62, but the amount you receive each month depends on when you claim. If you claim at 62, your payment will be roughly 30 percent lower than if you wait until your full retirement age. Your full retirement age is between 66 and 67, depending on the year you were born.

If you delay claiming past your full retirement age, your benefit grows by about 8 percent per year until age 70. At 70, the growth stops, so there is no financial reason to wait longer. The choice between claiming early, at full retirement age, or at 70 is a trade-off between getting smaller payments now or larger payments later. Someone who lives into their mid-80s typically comes out ahead by waiting, but that depends on your individual health and circumstances.

To receive retirement benefits, you must have worked and paid Social Security taxes for at least 10 years (40 work credits). If you have not worked that long, you will not receive a benefit under your own record, though you may be able to receive a benefit based on a spouse's or ex-spouse's work record.

Disability Benefits for People Who Cannot Work

Social Security Disability Insurance (SSDI) pays workers under full retirement age who have a medical condition that prevents them from working. The condition must be expected to last at least 12 months or result in death. You do not have to be completely unable to work — the SSA looks at whether you can do any substantial work, which means earning more than a certain monthly amount (the limit changes yearly).

Like retirement benefits, SSDI requires you to have worked and paid Social Security taxes. The number of work credits you need depends on your age — younger workers need fewer credits. Once you have been on SSDI for two years, you become may be able to access for Medicare, even if you are under 65.

The application process for disability is longer and more detailed than for retirement. You will need medical records, work history, and a description of how your condition limits your ability to work. The SSA may deny your claim initially; many people are denied the first time and must appeal.

Survivor Benefits for Family Members

If you die, Social Security pays monthly benefits to your spouse (at any age if caring for your child under 16, or at 60 or older), your ex-spouse (if you were married at least 10 years), and your unmarried children under 19 (or 19 if still in high school). A family can receive a total amount each month, called the family maximum, which is usually 150 to 180 percent of what you would have received at full retirement age.

You do not have to be retired for your family to receive survivor benefits. If you have worked long enough and paid Social Security taxes, your family is covered from the moment you die. This is one reason Social Security functions as life insurance, not just a retirement program.

How Much You Will Receive

Your benefit amount is based on your highest 35 years of earnings. The SSA adjusts your past earnings for inflation, then calculates an average monthly amount. The formula is weighted to replace a larger percentage of income for lower earners than for higher earners — someone who earned $20,000 per year will receive a higher percentage of their past income than someone who earned $100,000 per year.

You can see an estimate of your benefit by creating an account on ssa.gov and viewing your Social Security Statement. The statement shows your earnings history and estimates for retirement, disability, and survivor benefits. These estimates assume you continue working at your current pace until retirement age.

The average retirement benefit in 2024 is around $1,900 per month, but this varies widely. Someone who worked at lower wages will receive less; someone who worked at higher wages will receive more. Survivor and disability benefits follow the same calculation based on the worker's earnings record.

How to Start Receiving Benefits

You must contact the Social Security Administration to begin receiving benefits. You can apply online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. Online is usually fastest — you can complete the application in one sitting and track its progress on your account.

For retirement benefits, you can apply up to four months before you want payments to start. For disability, you should apply as soon as you become unable to work, because there is a five-month waiting period before payments begin. Survivor benefits are typically filed by family members after the worker's death.

You will need documents to prove your age, citizenship or legal residency, and work history. A birth certificate, passport, or state ID works for age. For work history, the SSA already has your records if you have paid Social Security taxes, but you may need to provide a recent tax return or W-2 to confirm current earnings.

Work and Earnings While Receiving Benefits

If you claim retirement benefits before your full retirement age and continue working, the SSA will reduce your benefit by $1 for every $2 you earn above a yearly limit (the limit changes yearly and is higher in the year you reach full retirement age). Once you reach full retirement age, there is no earnings limit — you can work and earn as much as you want without losing benefits.

If you are receiving disability benefits and work, your benefits will continue through a trial work period that lasts nine months. After that, the SSA monitors your earnings to see if you are still unable to work. If your earnings exceed the substantial gainful activity level, your benefits will stop, though you may be able to restart them if your work ends.

Frequently Asked Questions

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

You must have worked and paid U.S. Social Security taxes to receive a benefit under your own record. If you worked in another country, that time may not count unless the U.S. has a totalization agreement with that country. Contact the SSA to discuss your specific work history.

What happens to my benefits if I move out of the country?

You can receive retirement, disability, and survivor benefits while living outside the U.S., with some exceptions. Citizens of certain countries cannot receive benefits while outside the U.S. The SSA will tell you whether your country is affected when you contact them.

Can I change my mind after I start taking benefits?

If you have been receiving benefits for less than 12 months, you can withdraw your application and repay what you received, then reapply later at a higher amount. After 12 months, you cannot withdraw, but you can request a one-time increase by waiting longer. Rules differ for disability and survivor benefits.

How do I report a change in my income or living situation?

Contact the SSA by phone, online, or in person. Changes that matter include returning to work, a change in marital status, moving, or a change in your medical condition if you are on disability. The SSA will tell you which changes affect your benefits.

What if the SSA denies my disability claim?

You have the right to appeal. You can request reconsideration within 60 days of the denial letter, then request a hearing before an administrative law judge if reconsideration is also denied. Many people are approved on appeal. You can represent yourself or hire a lawyer who specializes in Social Security disability cases.