What Are the Benefits of Social Security?
During the Great Depression of the 1930s, the time was right for developing a national retirement plan and safety net to help older workers. In 1935, Congress adopted the social insurance system we know as Social Security. Changes along the way added dependent and survivor benefits, cost of living raises and taxation of some benefits. Social Security covers about 96 percent of workers in the United States and benefits keep many workers and families from living in poverty.
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Retirement Benefits
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According to a study by Paul N. Van de Water at the Center on Budget and Priority Policies, without Social Security, 40 percent of retirees would live in poverty in 42 states. With Social Security benefits, the elderly poverty rate in most states is 10 percent or less. Social Security provides the retiree with about half the income needed for retirement and providing 100 percent of retirement needs was never the goal. Other retirement funds come from retirement plans at work, personal retirement plans, investments, interest-bearing accounts and part-time employment. Medicare benefits are available to qualifying workers at age 65, assisting retirees with hospital and medical costs. Workers can choose to retire as early as age 62, delay retirement to full retirement age at 66 or 67, or take retirement benefits as late as age 70. Benefits continue to accrue so long as the worker does not accept them.
Benefits for Children
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Social Security benefits children whose parents are retired, disabled or deceased. Children under age 18 receive Social Security benefits if a parent qualifies for disability or retirement, or is deceased. A surviving spouse also may receive Social Security benefits for caring for a child under the age of 16. Disabled children receive Social Security benefits as well. Disabled children whose disability began prior to age 22 may qualify for disability benefits as adults.
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Survivor Benefits
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Social Security provides life insurance for workers' families in the form of a monthly payment for as long as each person qualifies. A spouse may receive survivor benefits at any age when caring for the deceased's child under age 16. A spouse may receive survivor benefits as early as age 60 without childcare or age 50 if disabled. An ex-spouse may receive survivor benefits if married to the worker for 10 years and unmarried. An ex-spouse caring for the deceased's child may collect benefits with less than 10 years of marriage.
Disability Insurance
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Social Security benefits disabled workers with payments for those who qualify. The disabled worker receives a monthly annuity or benefit for long-term disability. The family also may receive benefits based on the disability of the worker. A spouse without childcare can qualify for benefits at age 62. Disability benefits have added advantages for the disabled worker of Medicare coverage after 24 months and income supports for assisting the disabled worker to regain employment.
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