Question #1--  What Is Social Security and Who is Eligible?

The U.S. Social Security Administration manages the following programs:

- Benefits for retired workers, spouses, and dependents

- Survivorship benefits for family members of deceased workers

- Benefits for workers who are disabled before retirement

Question #2--  Who Is Eligible for Social Security Benefits?

Workers who have contributed to social security (via social security tax on income) are eligible to receive benefits after they have worked a certain number of years.

Question #3--  How Are Social Security Retirement Benefits Calculated?

To determine your social security benefits at retirement, your wages over your lifetime are averaged over that time, and adjusted for any changes in average wages. The calculation of your retirement benefit is based upon the 35 years of your work life in which the most money was earned.

Based on this calculation, you will receive a “primary insurance amount” at your full retirement age.

Your full retirement age is based on your year of birth. To determine your full retirement age, go to http://www.socialsecurity.gov/pubs/ageincrease.htm.

Question #4--  Can I Estimate My Social Security Retirement Benefit?

Visit http://www.socialsecurity.gov/begin-est to estimate your benefits. (You will first be prompted to agree to the conditions of the Social Security Administration’s online services.) The estimator can be used if you are not currently receiving retirement benefits or Medicare benefits.

In order to use the online estimator, you must also have earned enough social security credits to be eligible for the benefit. Social security credits are a measure of the amount you have worked, and are determined by income. In 2008, $1,050 of earnings equaled one credit. The earnings amount may be adjusted yearly to reflect increases in average annual wages.

Question #5--  How Do I Apply for Social Security Retirement Benefits?

Plan to apply for your retirement benefits within four months prior to receiving your first payment.

Begin the application process in one of two ways:

- Apply online at https://secure.ssa.gov/apps6z/ISBA/main.html.

- Apply by calling the Social Security Administration toll free number at http://www.ssa.gov/pgm/services.htm. This enables you to make an appointment over the phone or at a local Social Security Administration office to start the process.

During the application process, the following items may be required:

• Social Security number
• Certificate of birth
• W-2 forms or tax return for prior year if self employed
• Proof of U.S. citizenship or lawful alien status
• Other items such as military discharge papers, or spouse and children’s birth certificate and social security numbers if they are to receive benefits

Question #6-- How Old Do I Need to be to Receive Social Security Retirement Benefits?

If qualified for retirement benefits, you can begin receiving benefits at 62 years of age. However, your benefit will be reduced if benefits are taken before your full retirement age.

Go to http://www.socialsecurity.gov/retire2/retirechart.htm for the estimated reduction if you begin taking benefits prior to your full retirement age.

Question #7--  Will I Increase My Retirement Benefit if I Delay Taking Benefits Until After My Full Retirement Age?

Yes, as a qualified recipient of social security retirement benefits, you will receive more if you delay starting payments until after your full retirement age. However, this is only the case up to age 70 years. After this age, the benefit will no longer increase, even if you continue to delay the benefit.

For an explanation of how this works, go to http://www.socialsecurity.gov/retire2/delayret.htm.

Question #8--  If My Spouse and I Both Receive Retirement Benefits, Will Our Combined Benefit Be Reduced?

If you have both qualified to earn social security retirement benefits (i.e., both earned the minimum number of retirement credits), your benefits will be calculated separately and will not be reduced.

If a spouse is unable to collect benefits because he or she has not earned the minimum amount of retirement credits, they may be eligible for spousal benefits.

Question #9--  What Are Social Security Survivor Benefits?

If a person who has worked a minimum number of years and has paid social security taxes dies, that person’s surviving spouse, or certain other family members, may be eligible for survivor benefits.

Examples of some situations in which a survivor may qualify for benefits include:

• A widow or widower may receive full benefits at full retirement age or reduced benefits beginning at age 60 years.
• A disabled widow or widower may receive benefits as early as age 50 years.
• A widow or widower may receive benefits if they care for the deceased person’s child (if the child is under age 16 years or disabled, and receives Social Security benefits).
• Other qualifying situations also occur.

Learn about Social Security survivor benefit programs at http://www.ssa.gov/ww&os2.htm.

Question #10--  What Are Disability Benefits?

These benefits are paid to recipients with qualifying disabilities. Two programs oversee these benefits: 

- The Social Security Disability program provides benefits to eligible recipients who have paid into the social security program for a required length of time. 
- The Supplemental Security Income program (SSI) provides benefits to qualified adults and children with limited income.