• Social Security Benefits

Social Security retirement benefits are paid by the U.S. government, through the Social Security Administration, primarily to working individuals who have retired from full-time employment. Benefit payments are automatically deposited to the retiree’s bank account once a month or, if desired, can be mailed to the retiree. Social Security benefits are intended to help replace income lost once a worker retires. They are not intended to be the only source of support for a retiree; it is hoped that he or she will have savings, a pensions or other income and assets available during the retirement years.

WHO IS ELIGIBLE?

To qualify for Social Security benefits, the retiree who applies for benefits must be age 62 or older and must have been employed, or have been self-employed, and have worked enough over the years to have earned 40 Social Security credits. A “credit” is added to the worker’s Social Security account each time he or she earns and pays employment taxes on a specified amount of wages; in 2008, a credit is added to an individual’s Social Security account for each $1,050 earned, with a maximum of four credits earned per year.

In other words, in order to be eligible for Social Security retirement benefits, you must have worked and paid Social Security taxes into the system to earn those 40 required credits, whether this was done through payroll taxes or through self-employment taxes. Because a maximum of four Social Security credits can be earned each year, it generally takes a minimum of 10 years of Social Security covered employment to earn the needed 40 credits. It can sometimes take longer if you make only a minimal amount of money during the year (remember, in 2008, you must earn $1,050 to earn one credit).

IS MY FAMILY ELIGIBLE?

If you qualify for Social Security benefits, certain members of your family may also qualify, based on your eligibility. Those family members who may be eligible include:

• Your husband or wife 62 or older
• Your husband or wife less than 62 years of age, if your spouse cares for a minor or disabled child
• Your unmarried minor children (less than 18 years old)
• Your unmarried minor child age 18-19, if the child is a full time high school student
• Your children who were disabled before they reached age 22, regardless of their current age
• Your divorced spouse (to whom you were married for at least 10 years), currently unmarried and 62 or older

WHAT IF I DIE?

If a worker insured by Social Security dies (even before earning 40 credits), his or her spouse and/or minor or disabled children may also be eligible for survivor’s benefits under Social Security.

WHAT IF I AM DISABLED?

A worker insured by Social Security who is disabled prior to reaching retirement age may apply for Social Security disability benefits, but must prove the nature and extent of his or her disability.

ARE NON-CITIZENS ELIGIBLE?

Both U.S. citizens and aliens legally in the country may qualify for Social Security benefits based upon the same eligibility criteria (the 40 quarters earned in the system).

AT WHAT AGE CAN I RECEIVE MY SOCIAL SECURITY BENEFITS?

The retirement benefits you will receive are based on your income over time and the age at which you retire and apply for Social Security benefits. The current minimum age for full retirement benefits is from 65 to 67, depending on the year of your birth. Because people are living longer, the minimum full retirement benefit age is being increased slightly and this change is being phased in based on the year of birth. You can apply for benefits at 62, or between age 62 and your full retirement age, but your benefits will be decreased because, since you are applying early, you are expected to collect Social Security benefits for more years than if you waited until full retirement age to apply. If you wait until later than your full retirement age to apply, your benefits may increase because you are expected to collect benefits for fewer years than if you applied earlier.

HOW DO I APPLY FOR SOCIAL SECURITY BENEFITS?

You must apply for benefits – they do NOT automatically begin. You may apply by phone or in person at a Social Security office. To make things more convenient, the Social Security Administration now takes applications for benefits through its web site, www.socialsecurity.gov. and offers information on a number of frequently asked questions on line.

Please see the Social Security web site or contact the Social Security Administration for answers to specific questions about your eligibility and your benefits.

Please see the listing information provided below by the Social Security administration regarding their new on-line application system.

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