Anyone who has been participating in the workforce is likely to be looking forward to retiring sometime in the future. For citizens of the United States, there are various options for retirement funds that can help them live a hassle-free life after work.
If you are looking for the most basic way to get an income after retiring from work, you might want to look into the country’s social benefits program.
Every U.S. citizen of the U.S. has a Social Security Number (SSN), which lets them participate in the country’s social welfare program. If you want to have a deeper understanding of this program, here’s what you need to know. Read on to learn more.
What Is Social Security?
Being a federal program, social security is operated and managed by the government. Basically, it is a pool of funds from taxes, specifically to provide benefits to eligible individuals given that they pass social security eligibility.
Eligible individuals are those who are retired, have disabilities, and surviving spouses and children of deceased beneficiaries.
When you qualify for these benefits, you will receive payouts in the form of money via checks or direct deposits. The amount you receive will depend on your lifetime earnings and age at which you start receiving payments.
For those who will receive payments as a spouse, keep in mind that this can affect the amount of money you will get.
What Social Security Benefits Can You Get?
There are 4 types of these government benefits namely retirement, disability, benefits for spouses or survivors, and supplemental security income (SSI) benefits. The name speaks for themselves for the first three.
For retirement benefits, you will need to provide your date and place of birth, SSN, details of your spouse, names of unmarried children, bank details, citizenship status, and whether someone has tried applying on your behalf.
Supplemental Security Income
However, you may be less familiar with SSI. It is an income supplement for individuals 65 years old and above, as well those with visual impairments and other disabilities with little to no income.
As mentioned, there are several factors that can affect the amount of money that will get every payment. On average, a beneficiary can receive $1,503 per month as of January 2020. For individuals who wait until their full retirement age, the payout is $3,011 in 2020.
Keep in mind that this full retirement payout can only be attained if you earn the maximum taxable amount which is $137,700 in 2020.
How to Receive SS Payouts
In order to receive benefits, the first thing you need to do is to apply. You can do this by applying online or by calling the agency’s toll-free service at 1-800-772-1213. You can also visit any social security office.
During your application, you will be given then option to specify the month you want to start receiving your payout. For those within 3 months of age 65, you will be asked whether you want to get Medicare.
Remember that enrolling in Medicare means that your payments will be deducted from the amount needed to pay for premiums.
An application process is also followed for those applying for disability and survivor benefits, as well as SSI. The agency will evaluate your eligibility based on the number of years worked, current work activities, and if you are a survivor, whether or not you are receiving benefits.
The Bottom Line
Social security benefits are designed to cover your needs during retirement age, during disabilities, or if you are a survivor of a beneficiary. To ensure that you will get the payments you are entitled to, make sure to check with the agency.