Social Security is a program by the federal government that offers financial assistance to a survivor or retired, disabled, or dependent person. It is sometimes called the Old Age, Survivors, and Disability Insurance (OASDI) program. The scheme provides the person with a source of income even after they retire or cannot work due to a disability. It also helps their dependents, such as their spouse and kids, in the event of their death.

Benefits under the Social Security program
When discussing Social Security, most individuals only consider the retirement benefits. But the program has many other advantages too. Below we have discussed all the benefits quickly:

Retirement benefits
Employees covered under the program can receive partial income after they retire. To qualify, they should have worked for around ten years at a non-governmental job and paid FICA or self-employment taxes. The retirement benefits can begin any time after one reaches 62. But the incentives are usually lower at this time. Under the Social Security benefits plan, individuals receive higher incentives if they reach full retirement age, like 66 or 67.

If one chooses to begin receiving payments before retirement age, the program will deduct a portion of the amount by a certain percentage. But the incentives will increase if they wait a few more years to put in a claim.

Disability benefits
Suppose a person has not reached retirement due to a certain disability that prevents them from working full time. In such a situation, they are eligible to claim disability benefits under the Social Security Disability Insurance (SSDI) program. Usually, if someone has worked for at least five to ten years before disability, they have fulfilled the requirement of availing of the benefits under this scheme.

Besides showing that they have worked for a sufficient number of years, applicants may have to submit proof of disability. Also, at least a year should have passed since the problem was diagnosed. After that, the individual may receive a set amount every month, which is calculated based on multiple factors.

Dependent benefits
Even spouses of disabled or retired workers are eligible to receive Social Security benefits, also known as spousal benefits. This is irrespective of whether they are dependent on their partner. However, a few requirements must be fulfilled. For example, the spouse should be 62 or older. Or, they should be looking after the worker’s child aged 16 or under. Minor children, especially those who become disabled before the age of 22, are also eligible to avail of the dependent benefits based on the earning records of the worker.

Survivor benefits
A person is eligible to avail of Social Security survivor benefits under this program if they are the surviving spouse of a worker. Their minor or disabled children are also eligible to avail of the survivor benefits by Social Security. Further, a widow or widower can claim survivor benefits after age 60 or 50 if they are disabled and cannot work.

Supplemental security income (SSI) benefits
This special category of benefits is for people aged 65 or older, blind or disabled, and the ones with limited resources to earn income. It provides financial assistance to meet the applicants’ basic needs, such as food and clothing.

If any individual thinks they could be eligible to avail of any of the above-mentioned Social Security benefits, they can find out if they qualify with the help of several online screening tools.

How does the Social Security benefits system work
When employees or workers pay taxes, the money is used to pay benefits to retired workers and disabled individuals under the program. If any amount remains, it will directly go to the Social Security Trust Fund for future purposes when the current amount is not sufficient to cover everyone’s benefits. The system has two trust funds: Old-Age and Survivors Insurance (OASI) Trust Fund and Disability Insurance (DI) Trust Fund.

How to calculate the Social Security benefit amount?
Individuals need to create a Social Security account online to calculate the benefit amount. With an account, they can check their total benefits, get a Social Security statement, and do a lot more.

The official Social Security Administration (SSA) website has an online Social Security benefits calculator, which helps people calculate their estimated earnings. All one has to do is log in to their Social Security account and answer a few questions to prove their identity. There are different types of calculators, such as those that help estimate how much the benefit amount will reduce if they retire early or later than usual. This helps plan finances for retirement so that one does not struggle to meet daily expenses.

From the above points, it is evident that Social Security has many advantages. So, those who are eligible must apply for benefits for themselves and qualifying family members at the earliest!