Social Security Frequently Asked Questions

Learn about Social Security benefits eligibility, including if you are eligible, when you may collect them, and how much you will get.

Questions

Who is entitled to Social Security benefits?
How are the amounts of my Social Security benefits calculated?
Can I stay working after I begin receiving retirement, dependent, or survivors benefits?
When will I be able to begin receiving Social Security retirement benefits?
Can I get more than one form of benefit at the same time?
Can I get spousal support if I’m divorced?
How much Social Security can I expect to receive?

Who is entitled to Social Security benefits?

The particular qualifying criteria for Social Security benefits vary based on the kind of benefits, the age of the individual submitting the claim, and the age of the worker if you are claiming as a dependant or survivor.

Except for SSI (Supplemental Security Income), there is one fundamental criteria that applies to all Social Security programs: the worker on whose earnings record the benefit is to be paid must have worked in “covered employment” for a sufficient number of years. This implies that the worker must have accumulated a sufficient number of “work credits” by the time he or she claims retirement benefits, becomes handicapped, or dies (usually a total of at least ten years of work).

How are the amounts of my Social Security benefits calculated?

The computations are difficult. A formula determines the amount of any benefit based on the average of your annual reported earnings since you started working.

To make things even more complicated, Social Security calculates your typical earnings differently based on your age. If you turned 62 or became disabled before December 31, 1978, Social Security takes the actual monetary worth of your entire prior earnings and bases your monthly benefits on that amount.

If you turned 62 or became handicapped on or after January 1, 1979, your earnings are divided into two groups by Social Security: Earnings before to 1951 are credited with their real cash amount, up to a maximum of $3,000 per year; and thereafter in 1951, annual restrictions on earnings credits are imposed, regardless of how much you actually earned in those years.

Can I stay working after I begin receiving retirement, dependent, or survivors benefits?

Yes, and a lot of people do it. People beyond the full retirement age may work and earn whatever amount they choose without losing their Social Security benefits.

However, if you surpass a specific amount of earned income for the year ($14,160 in 2010), Social Security will deduct money from your benefit check before you reach full retirement age. The restriction solely applies to profits from labor; it does not apply to earnings from savings, investments, pensions, or rental property. In other words, earnings from these sources have no bearing on your Social Security payments.

For the year in which you achieve full retirement age, the Social Security Administration has added a particular twist. During the 12 months preceding your birthday, you will lose one dollar of benefits for every three dollars earned in excess of a monthly maximum ($3,140 in 2010). You may earn any amount of money after your birthday without losing your perks.

When will I be able to begin receiving Social Security retirement benefits?

Previously, the Social Security Administration considered 65 to be the full retirement age for the retirement pension. The benefit levels were estimated on the premise that the majority of employees would quit working full-time and begin collecting retirement benefits when they reach the age of 65.

Because individuals are living longer lives, Social Security’s regulations for what constitutes full retirement age have altered. For everyone born before 1938, 65 is still considered full retirement age. However, for persons born in 1938 or after, the full retirement age progressively rises from 65 to 67. The complete retirement age for everyone born after 1960 is 67.

Can I get more than one form of benefit at the same time?

No. You may be eligible for more than one sort of Social Security benefit at the same time, but you may only receive one. For example, you may be eligible for both retirement and disability benefits, or you may be eligible for benefits based on both your own retirement and those of your retired spouse. You may get whichever of these advantages is greater, but not both.
Can I get spousal support if I’m divorced?

If both you and your former spouse have reached the age of 62, your marriage lasted at least 10 years, and you have been divorced for at least two years, you are eligible for dependent payments. If your ex-spouse was already receiving retirement benefits prior to the divorce, the two-year waiting period does not apply.

You may begin collecting benefits as soon as your ex-spouse becomes eligible for retirement benefits. He or she does not have to be receiving those benefits in order for you to get dependant benefits.

If you are receiving dependents benefits based on your ex-employment spouse’s record and subsequently marry someone else, you will lose your claim to those benefits. However, depending on your new spouse’s job history, you may be eligible for dependent benefits. If you divorce again, you may claim benefits on either your first or second spouse’s record if you were married for at least 10 years the second time around.

How much Social Security can I expect to receive?

The amount of benefits to which you

are eligible under any Social Security program is not determined by financial need (save for SSI — Supplemental Security Income), but rather by the income you have earned over the years via jobs and self-employment. Social Security maintains track of your wages during your working career and provides benefits based on the average amount earned.

Whether you collect your Social Security retirement benefits before or after reaching full retirement age can affect your benefits (65-67, depending on the year you were born). The longer you wait to begin receiving payments, the greater your benefit amount. However, waiting until your full retirement age to obtain Social Security payments is not always preferable.