First created in 1935 as part of President Franklin D. Roosevelt’s New Deal, the Social Security Administration (SSA) was created to assist retired or elderly Americans who had lost everything in the 澳洲幸运5官方开奖结果体彩网:Great Depression. After the program was launched, it was expanded to help children, widows, and disabled individuals.

All of the social insurance programs have specific eligibility rules. Those who qualify for benefits may also receive an annual increase, or 澳洲幸运5官方开奖结果体彩网:cost-of-living adjustment (COLA), based on inflation. For 2025, the SSA enacted a 2.5% increase.

1. Retirement Benefits

For many Americans, the words “Social Security” are synonymous with retirement, the largest wing of the organization. Retirees and their dependents account for approximately 78% of total Social Security benefits paid. While employed, workers pay a 6.2% 澳洲幸运5官方开奖结果体彩网:Social Security tax on earnings up to a maximum income of $168,600 in 2024, and their employer pays a matching 6.2%. If self-employed, then individuals pay the entire 12.4% tax.

The SSA assigns credits to paid taxes. Workers need 40 credits to qualify for retirement benefits. In 2024, individuals earn 1 Social Security and Medicare credit for every $1,730 earned. Individuals must earn $6,920 to get the maximum 4 credits for the year.

Workers can start collecting Social Security benefits as early as age 62, but benefits will be reduced. If they delay retirement to age 70, workers receive increased Social Security benefits, up to 8%, depending on their birth year. According to the SSA, 澳洲幸运5官方开奖结果体彩网:full retirement benefits begin at age:

• 66, if born in the 1943–1954 range
• 66 and 2 months, if born in 1955
• 66 and 4 months, if born in 1956
• 66 and 6 months, if born in 1957
• 66 and 8 months, if born in 1958
• 66 and 10 months, if born in 1959
• 67, if born in 1960 or later
  

2. Survivor Benefits

Social Security can continue to pay benefits to a spouse and children after a worker's death. To receive survivor benefits, a worker needs at least six Social Security credits earned during the three years before their death.

Along with a one-time lump-sum payment of $255, the surviving spouse and children may each qualify for 71.5% to 100% of your Social Security payments, up to 150% to 180% of the worker's benefit rate. Eligibility guidelines include:

• The surviving spouse is at least 60 or older
• Surviving spouse is 50 or older and disabled
• Surviving spouse is caring for a child younger than 16 or disabled
• Children who are younger than 18
• Children younger than 19 and enrolled in elementary or secondary school
• Children older than 18 who are severely disabled
• Surviving parents if they were dependent on the worker for at least half of their support

3. Disability Benefits

Those who qualify for Social Security disability benefits are severely disabled with a condition that entirely prevents them from working and is expected to last a year or longer or result in death. Those at least age 62 must have earned 40 credits to qualify for disability payments. Younger applicants require fewer credits, down to a minimum of six credits for those younger than 24.

A worker's spouse and children may qualify for benefits, receiving up to half the recipient's payment. If approved, disability benefits will begin six months after the disability begins. Payments are based on lifetime earnings.

The Bottom Line

Most Americans receive Social Security benefits during their lifetime. Although most recipients are retirees, many obtain benefits with a disability or as survivors. Social Security payments commonly play a large part in a retiree's income portfolio.