CandleFocus Glossary Editor
Social Security is a federal program in the U.S. that provides retirement benefits and disability income to qualified people and their spouses, children, and survivors. To qualify for Social Security retirement benefits, workers must be at least 62 years old and have paid into the system for 10 years or more. Workers who wait to collect Social Security, up to age 70, can receive higher monthly benefits. The amount of benefits is calculated based on one's average indexed monthly earnings (AIME) during their 35 highest-earning years. AIME is an average wage adjusted for years of employment, inflation and wage increases over time. This means that the amount of benefits for one person may be very different from those for another.
In addition to retirement benefits, Social Security also provides important disability income and survivor benefits. People who are unable to work due to a disabling medical condition may be eligible for Social Security disability benefits, as long as they meet certain criteria. Social Security also provides death benefits, such as Dependency and Survivors Insurance benefits, to the spouse and dependent children of a deceased worker. These benefits can provide them with financial aid to get by during a time of great difficulty and loss.
Overall, Social Security is an important part of the U.S. retirement system. Along with savings and other investments, Social Security can provide security and peace of mind in retirement, helping one to live a secure and comfortable life. Calculating the amount of benefits one may be eligible for can be complicated, so it is best to confer with a qualified accountant or financial planner to understand how retirement, disability, and death benefits can be maximized.
In addition to retirement benefits, Social Security also provides important disability income and survivor benefits. People who are unable to work due to a disabling medical condition may be eligible for Social Security disability benefits, as long as they meet certain criteria. Social Security also provides death benefits, such as Dependency and Survivors Insurance benefits, to the spouse and dependent children of a deceased worker. These benefits can provide them with financial aid to get by during a time of great difficulty and loss.
Overall, Social Security is an important part of the U.S. retirement system. Along with savings and other investments, Social Security can provide security and peace of mind in retirement, helping one to live a secure and comfortable life. Calculating the amount of benefits one may be eligible for can be complicated, so it is best to confer with a qualified accountant or financial planner to understand how retirement, disability, and death benefits can be maximized.