What Social Security Is and Who It Serves

Social Security is a federal insurance program that pays monthly benefits to people who have worked and paid into the system, as well as to their spouses, children, and survivors. It is not a savings account in your name — it is a shared pool funded by payroll taxes from current workers, which then pays current beneficiaries. You become may be able to access to receive benefits based on your age, your work history, or a family member's work history.

Most people think of Social Security as a retirement program, and it is the largest source of income for people over 65. But Social Security also pays benefits to people who become disabled before retirement age, to the surviving family members of workers who die, and to spouses and ex-spouses under certain conditions. Understanding which category applies to you changes when you can start receiving money and how much you will get.

The program has been running since 1935 and covers about 67 million people today. If you worked in the United States and paid Social Security taxes (the 6.2% deduction from your paycheck), you have a Social Security record, and you may be may have access to to benefits even if you have not yet retired.

Key Takeaways

  • Social Security pays monthly benefits to retired workers, disabled workers, spouses, children, and surviving family members — not just people over 65.
  • You build may be able to access by working and paying Social Security taxes; you need 40 credits (roughly 10 years of work) to may have access to for retirement or disability benefits.
  • The age at which you can claim retirement benefits ranges from 62 to 70, and claiming earlier means a smaller monthly payment for life.
  • You can check your earnings record and estimated benefits anytime by creating a my Social Security account at ssa.gov.
  • Social Security is designed to replace part of your income, not all of it — most financial advisors recommend having other sources of retirement income as well.

How You Build Social Security Credits and may be able to access

Social Security may be able to access is based on work credits, not on how much money you earned. In 2024, you earn one credit for every $1,730 of wages you make (this amount changes each year). You can earn a maximum of four credits per year, which means you can build a full year of credits in any three-month period if you earn enough.

To receive retirement benefits, you need 40 credits total — which typically takes about 10 years of work. To receive disability benefits, you need fewer credits if you become disabled before age 24, but generally between 20 and 40 credits depending on your age. Survivors of a deceased worker may receive benefits with as few as six credits if the worker dies young.

If you worked for a government employer and did not pay Social Security taxes (some teachers, police officers, and civil service workers fall into this category), you may have a reduced benefit or no Social Security benefit at all, even if you worked elsewhere. This is called the Government Pension Offset or Windfall Elimination Provision, and it affects a small number of people. You can find out whether it applies to you by contacting Social Security directly.

Retirement Benefits: When You Can Claim and How Much You Get

You can claim Social Security retirement benefits as early as age 62, but the amount you receive depends on when you claim. If you claim at 62, your monthly payment will be roughly 30% lower than if you wait until your full retirement age (which ranges from 66 to 67 depending on your birth year). If you delay claiming until age 70, your monthly payment increases by about 8% for each year you wait past your full retirement age.

Your benefit amount is also based on your 35 highest-earning years of work. Social Security calculates an average of those years and applies a formula to determine your Primary Insurance Amount — the benefit you receive at your full retirement age. If you did not work 35 years, Social Security counts zero-earning years, which lowers your average and your benefit.

The decision of when to claim is personal and depends on your health, your other income sources, and your family history. Someone in excellent health with no other income might benefit from waiting until 70. Someone with limited life expectancy or when ready financial need might claim at 62. There is no single "right" age — it depends on your situation.

Disability and Survivor Benefits

Social Security Disability Insurance (SSDI) pays benefits to workers under full retirement age who have a medical condition expected to last at least 12 months or result in death. You do not have to be completely unable to work — you must be unable to do substantial work because of your condition. The medical evidence you provide to Social Security is the key factor in approval.

SSDI is different from Supplemental Security Income (SSI), which is a needs-based program for people with low income and few assets. SSDI is based on your work record; SSI is based on financial need. Many people confuse the two because both are administered by Social Security, but they have different rules and different benefit amounts.

Survivor benefits are paid to the family members of a worker who dies — a spouse at any age if caring for a child under 16, a spouse at 60 or older, unmarried children under 19 (or 19 if still in high school), and dependent parents at 62 or older. The total amount paid to all family members is capped at roughly 150% to 180% of what the worker would have received, so the benefit is split among survivors.

Spousal and Ex-Spousal Benefits

If you are married, you may be may have access to to a benefit based on your spouse's work record, even if you did not work much yourself or worked part-time. A spouse can receive up to 50% of the worker's full retirement age benefit. An ex-spouse can receive the same benefit if the marriage lasted at least 10 years, you are at least 62, and you have been divorced for at least two years (or your ex-spouse is already receiving benefits).

The rules for spousal benefits changed in 2015. If you were born after January 2, 1954, you cannot claim a spousal benefit and delay your own benefit to grow larger — you must claim both at the same time, and Social Security will pay you based on whichever is higher. If you were born before that date, you may have more flexibility. This is one area where the rules are genuinely complex, and it is worth asking Social Security directly about your specific situation.

Divorced people often do not realize they have a Social Security benefit available to them. If you were married for 10 years or more and your ex-spouse has reached 62 (or has died), you may be may have access to to benefits even if you have not spoken to your ex in decades. You do not need their permission, and claiming does not affect their benefit.

How Your Benefit Is Taxed and Reduced

Social Security benefits are not automatically tax-free. If your combined income (your adjusted gross income plus half your Social Security benefits plus tax-exempt interest) exceeds certain thresholds, you may owe federal income tax on up to 85% of your benefits. The thresholds are $25,000 for single filers and $32,000 for married couples filing jointly — amounts that have not changed since 1984.

Your benefit can also be reduced if you claim before your full retirement age and continue to work. In 2024, Social Security deducts $1 from your benefit for every $2 you earn above $23,400 (this limit changes yearly). Once you reach your full retirement age, there is no earnings limit — you can work and receive your full benefit. This rule applies only to the year you reach full retirement age; after that month, you can earn any amount.

Some people also have their benefits reduced by the Government Pension Offset or Windfall Elimination Provision if they receive a pension from work where they did not pay Social Security taxes. These reductions can be substantial, cutting a spousal or survivor benefit by up to two-thirds. If you have a government pension, ask Social Security how it will affect your benefit before you claim.

How to Check Your Record and Plan Your Claim

You can view your Social Security earnings record and get an estimate of your future benefits by creating a my Social Security account at ssa.gov. You will need to verify your identity using a find process, and then you can see your complete work history, check for any errors, and see estimates for retirement, disability, and family benefits. This account is free and takes about 10 minutes to set up.

Your earnings record should be accurate, but mistakes happen. If you see missing years or incorrect amounts, you can request a correction. You have a limited time to correct errors — generally three years, three months, and 15 days from the end of the year in which you earned the wages. If you find an error outside that window, Social Security may still correct it if you have documents like W-2s or tax returns to prove the correct amount.

Once you have reviewed your record, you can think about when to claim. Social Security has a Retirement Estimator tool on their website that lets you see how your benefit changes if you claim at different ages. This tool uses your actual earnings record and gives you a personalized estimate. You can run different scenarios to help decide what makes sense for your situation.

Frequently Asked Questions

Can I get Social Security if I did not work in the United States?

If you worked in the U.S. and paid Social Security taxes, you have a record even if you were not a citizen at the time. If you worked outside the U.S., you generally cannot count those years toward Social Security. However, some countries have agreements with the U.S. that allow work in both countries to count. Contact Social Security to ask whether your country has a totalization agreement.

What happens to my Social Security if I move out of the country?

You can receive Social Security benefits while living in most countries. However, some countries are restricted, and the rules vary depending on your citizenship and the country where you live. If you plan to move abroad, contact Social Security before you go so they can explain how it will affect your benefits and what you need to do to keep receiving payments.

Can I change my mind after I claim Social Security?

If you claimed within the last 12 months, you can withdraw your claim and repay all the benefits you received. This resets your record, and you can claim again later at a higher amount. After 12 months, you cannot withdraw, but you can request a one-time increase if you have reached full retirement age. The rules are strict, so ask Social Security about your options before deciding.

How do I know if my Social Security number has been stolen?

Check your my Social Security account regularly to see if there are earnings on your record that you did not earn. If you see suspicious activity, contact Social Security right away. You can also place a fraud alert with the credit bureaus and check your credit report. Social Security has a scam alert page on their website with information about common fraud schemes.

Will Social Security still be around when I retire?

Social Security is funded by current workers' payroll taxes, and the program is expected to have enough money to pay full benefits through 2034. After that, if no changes are made, incoming revenue would cover about 80% of scheduled benefits. Congress has changed Social Security rules many times in the past and will likely do so again, but the program itself is not going away.