According to the Social Security Administration, over half of the elderly in the United States receive more than half of their income from social security, and in 2015 social security benefits accounted for almost 40% of the income of the elderly. Besides providing old age benefits, social security provides protection related to disability as well as benefits for dependents of a decedent. We will focus primarily on retirement income benefits in this article.
In order to qualify for social security, you must first acquire 40 credits (if you were born before 1929, you may need less). You can obtain up to four credits per year, and in 2016 you would have earned one credit for each $1,260 of covered earnings. So if you had earned $5,040 in 2016, you would have earned the maximum four credits for that year. Once you have earned the required 40 credits, you qualify for retirement benefits, and the amount of your benefits will depend on your earnings throughout your working life.
The retirement benefit amount will depend upon the age at which benefits are filed for, with “full retirement age” being the benchmark . Benefits will be higher if taken later than full retirement age, and lower if taken earlier than full retirement age. Full retirement age will vary depending upon your birth year. Details of your retirement benefits can be found in your social security statement, which is sent to you annually, and can also be accessed online at www.ssa.gov.