Social Security is one of the most important safety nets in America — not just for retirees, but for disabled workers and surviving family members as well. Whether you're approaching retirement age or planning decades ahead, understanding how Social Security benefits work can help you maximize what you receive and avoid common mistakes.
Let’s walk through the key aspects of the program, how eligibility is determined, and what you need to know to claim your benefits wisely.
Social Security is a federal insurance program designed to provide financial assistance to retirees, people with disabilities, and the families of deceased workers. It’s funded through payroll taxes—officially called FICA taxes—which are automatically deducted from your paycheck.
To qualify for benefits, you typically need to earn 40 credits, which usually takes 10 years of work. In 2024, one credit is earned for every $1,730 of income (up to four per year), and in 2025 that increases to $1,810.
Once eligible, you can claim benefits based on your own work history or, in some cases, on a spouse’s or ex-spouse’s record. The monthly amount you receive depends on how much you earned during your working years and when you begin claiming benefits.
Social Security isn't just for retirement. The system provides three primary types of benefits:
Retirement Benefits – for eligible workers who are at least 62 years old.
Disability Benefits – for those unable to work due to qualifying medical conditions.
Survivor Benefits – for family members of deceased workers who qualified for Social Security.
Each of these comes with its own set of rules and eligibility criteria, which we’ll explore next.
Retirement Benefits
To receive retirement benefits, you must be at least 62 years old and have earned the required number of credits. The amount you receive is based on your Average Indexed Monthly Earnings (AIME) over your 35 highest-earning years.
Your Full Retirement Age (FRA) depends on your birth year:
66 if you were born between 1943–1954
Gradually increases to 67 for those born from 1955–1960+
Claiming before your FRA will reduce your monthly benefit:
At age 62, you’ll receive only 70% of your full benefit (if FRA is 67)
Waiting until 70 increases your monthly check to 124% of your full benefit
Working while claiming early may also reduce your checks due to the Earnings Test:
In 2025, $1 is withheld for every $2 earned over $23,400
This limit increases slightly each year with inflation
Once you pass your FRA, your benefit is recalculated to credit any withheld payments.
Eligible Family Members
Several types of family members may be eligible to claim benefits based on your work record:
Spouses age 62 or older
Ex-spouses (if married for 10+ years and not remarried)
Children under 18 (or up to 19 if still in high school)
Disabled children of any age, if the disability began before age 22
Family members typically must wait until you begin receiving your own benefit before they can claim theirs.
Disability Benefits
Social Security provides financial support to individuals who are unable to work due to a long-term disability. The disability must:
Be expected to last at least 12 months or result in death
Significantly limit your ability to perform basic work activities
You may qualify even with fewer than 40 credits, depending on your age at the time of disability.
The application process requires:
Medical documentation
A detailed work history
Proof of income limitations
Once approved, you’ll receive benefits as long as your disability continues. The SSA will periodically review your condition to determine ongoing eligibility.
Family members may also qualify for benefits on your record, including:
Spouses (especially those caring for minor or disabled children)
Ex-spouses (if marriage lasted 10 years and they meet the same criteria)
Unmarried children under 18 (or up to 19 if still in school)
Disabled children (if disability began before 22)
Survivors Benefits
When a qualified worker dies, their family may be entitled to Survivors Benefits. These payments can be crucial in helping families maintain financial stability after a loss.
Eligible individuals include:
Widows or widowers age 60+ (or 50+ if disabled)
Surviving spouses of any age caring for a child under 16 or with a disability
Children under 18 (or 19 if in high school)
Disabled children of any age (if disabled before 22)
Dependent parents, if the deceased provided at least half their financial support
In addition to monthly payments, the one-time death benefit of $255 may be paid to the surviving spouse or child who lived with the deceased.
Benefit amounts are based on the deceased worker’s average lifetime earnings.
The Social Security Act was signed into law in 1935 by President Franklin D. Roosevelt. Originally designed to provide retirement income to workers 65 and older, the program has since evolved.
Key changes over the years include:
Early retirement option at 62
Disability Insurance added in the 1950s
Cost-of-living adjustments (COLAs) introduced in the 1970s
Spousal and survivor benefits expanded
Despite decades of service, the system faces future funding challenges. According to the latest Trustees Report, the retirement trust fund could be depleted by 2033, after which benefits may be reduced by about 21% unless Congress acts.
What This Means for You
While Social Security will likely still be around when you retire, it may not provide enough to fully cover your expenses. That's why it’s critical to:
Understand your benefits
Plan when to claim strategically
Supplement with personal savings or retirement accounts
Don’t rely solely on government benefits. Make Social Security one piece of your broader retirement strategy—not the whole plan.