Social Security is a crucial program for elderly and disabled Americans, providing income and health security to individuals who need it most. Understanding your benefits and the Social Security system as a whole can be a complicated and confusing endeavor. If you’re looking for a cheat sheet to make sure you understand your Social Security benefits, you’ve come to the right place. Here’s a social security cheat sheet designed to help you navigate the ins and outs of the system and make informed decisions about how to maximize your income.
What is Social Security?
Social Security is a federally-funded insurance program designed to provide income, health, and disability benefits to eligible Americans. It is administered by the Social Security Administration (SSA). Social Security benefits are available to workers and their families who have worked and paid taxes into the Social Security system over their lifetime.
Who is eligible for Social Security benefits?
To qualify for Social Security benefits, you must have contributed to Social Security through withholding, payroll taxes, and/ or Self-Employment taxes for at least forty “quarters” of your working life (i.e. 10 years).
Additionally, you must be a US citizen, permanent resident, or foreigner with an eligible visa. Most eligible people are:
• Retired workers
• Surviving family members of deceased workers
• Disabled individuals
• Children of workers
How much money will I get from Social Security?
The amount you receive is determined by the amount of money you and your employer have contributed to Social Security over your lifetime. This is usually based on your highest 35 years of wages. The amount can vary significantly depending on your individual circumstances and other factors, including when you begin claiming benefits.
To estimate the amount you will receive, you can use the Social Security benefits calculator.
When can I start collecting Social Security?
Although you can begin collecting Social Security as early as age 62, you will receive the maximum benefit if you wait until you reach full retirement age. The full retirement age will depend on which year you were born and is between 66 and 67 years old.
Additionally, Social Security offers delayed retirement credits if you decide to wait until after your full retirement age. For each year you delay, you will receive an increase of eight percent of your Social Security benefit amount.
How do I apply for Social Security Benefits?
You can apply for Social Security benefits either online, over the phone, or in person at the local Social Security office. To apply online, you will need your Social Security number, a valid driver’s license or state-issued ID, and contact information. If you choose to apply over the phone, you will need to provide the same information as well as have your tax returns from the previous year available. Applying in person will also require the same information, and proof of age and citizenship, such as a birth certificate.
When applying for benefits, you will also need to provide financial information on all your assets, such as investments and bank accounts.
What other government assistance programs may I be eligible for?
There are a number of other government assistance programs in addition to Social Security that you may be eligible for. The Supplemental Nutrition Assistance Program (SNAP) helps low-income seniors and families purchase food, and the Medicare program provides health coverage for those 65 and older.
If you are disabled, you may also qualify for the Supplemental Security Income (SSI) program and additional disability benefits. Other assistance programs include the HUD/ Section 8 assistance program, which provides assistance with housing, and the Low-Income Home Energy Assistance Program (LIHEAP), which helps low-income families pay their energy bills.
Social Security provides an important resource for elderly and disabled Americans, allowing them to secure an income and health benefits. Understanding your benefits and the Social Security system as a whole can be a challenging endeavor. We hope this Social Security cheat sheet has provided you with a helpful overview of the system and the key information you need to navigate it and make informed decisions about your Social Security benefits.