Social Security Benefits

Social Security Benefits

Old-Age, Survivors, and Disability Insurance (OASDI)

• An insurance that pays benefits to retired workers that help them meet their financial obligations and provides benefits to families of retired workers and disabled workers under certain conditions.

• Social Security taxes fund Old-Age, Survivors, and Disability Insurance (OASDI). 

Social Security Benefit

Benefit based on earnings over a person’s working lifetime; Full benefits are start at full retirement age; reduced benefits can start as early as age 62;

Full Retirement Age

• Age at which a person receives full retirement Social Security benefits.

• people born after 1960 must wait to start collecting full retirement benefits until age 67, their full retirement age.

Social Security Statement

• A record of the money an individual earned every year; it includes the number of credits you have earned.

• Each year you can earn a certain number of credits

• The statement also include your Social Security Credit history.

Social Security Credit

• The money you contribute to Social Security is not held in a bank account under your name—it is being used to fund current recipients of Social Security. Instead, you get a certain number of credits for each working year.

• Based on total wages and self-employment income during the year; the amount of earnings it takes to earn a credit changes each year;

• in 2016, a person had to earn $1,260 in covered earnings to get one credit

• people born after 1929 need 40 credits in their lifetime to qualify for Social Security benefits.