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Social Security in the US includes pension benefits, disability benefits, and survivors’ benefits. Retirement benefits are based on a worker’s earnings record and age. Disability benefits are available for those unable to work, and survivors’ benefits are available for families of deceased workers. The program may need to change in the future due to an aging population and increased life expectancy.
In the United States, the program known as Social Security includes the federal Old Age, Survivors, and Disability Insurance (OASDI) program. The largest component of social security benefits is that of pension benefits. Benefits are also paid to the handicapped, to the survivors of deceased workers and to the dependents of the beneficiaries.
Throughout a worker’s career, the Social Security Administration (SSA) tracks his or her earnings. The amount of social security benefits a worker is entitled to when he retires depends on his earnings record, as well as the age at which he chooses to retire. A worker’s retirement benefits are determined based on a quantity known as the Primary Insurance Amount (PIA), which is the average of a worker’s top 35 years of earnings. A percentage of the PIA is calculated and indexed for inflation to give the amount of monthly benefits a retired worker is entitled to. The earliest age at which pension benefits are available is 62.
If a person is unable to work due to a long-term or terminal physical or mental condition, they may be eligible for another type of Social Security benefit known as a Social Security Disability. For those who want to receive these types of benefits, it is best to apply for them as soon as possible, as it usually takes months to process an application. People, including children, who have little income or resources may also be eligible for a form of disability benefits through the Supplemental Security Income program, also administered by the SSA.
When a worker dies, their family may be eligible for social security benefits based on their work, known as survivors’ benefits. In this case, the “family” may include dependent children, a spouse or even the worker’s parents if they were dependent on him for at least half of their maintenance. Also, if you’re divorced, your ex-spouse can get Social Security benefits when you die if he meets several requirements, including having been your spouse for at least ten years.
Many economists and demographers have predicted that the way Social Security benefits are collected and distributed will eventually have to change. That’s because, as the population of the United States as a whole ages and life expectancy increases, the day will almost certainly come when more money is paid out in benefits than is collected in taxes by working citizens. Eventually, the SSA trust funds will be depleted if this is not remedied. These problems will have to be solved somehow if social security is to be preserved.
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