We pay into Social Security with every paycheck, so we expect to get something back when we retire. Knowing your benefits and how to make the most of them is the key for having a successful retirement with your Social Security benefits.

History

When most of us think about retirement, we automatically think about Social Security. Established in 1935 by President Franklin Delano Roosevelt, it’s a mainstay of American culture and meant to provide not only retirement benefits, but also medical and disability income.

Benefit Structure

Calculations for retirement benefits are based on the average lifetime earnings of the citizen. Usually, the 35 highest earning years are used for this calculation, but lower-earning years may be used in order to bring the total to 35 years.

Getting Your Own Social Security

Your benefits are there for you when you retire, but you have to apply for them. They are not granted automatically. Your benefits will vary depending on when you apply for them and what your workforce status has been over your lifetime. You will need to have worked at least 10 years in order to start receiving benefits. However, if you are a spouse of an eligible recipient, you may also qualify. At full retirement age, a spouse is eligible for at least half the amount of their spouse’s benefits. Children can also receive dependents’ benefits through Social Security.

Getting Others’ Social Security

When a spouse dies, you may be eligible for Survivor’s Benefit, dependent on age and physical ability. Disabled widows and widowers are eligible for Survivor’s Benefit as early as age 50, while able-bodied widows and widowers have to wait until age 60. A lump-sum death benefit of $255 is also paid at the time of passing.

Conflict in Earnings

Some may fear that their retirement pensions from work may negatively impact their Social Security benefits. This is normally not the case. If you also paid into Social Security at the job in which you have a pension, there will be no effect. However, if you did not pay into Social Security at that workplace, your Social Security benefits may be reduced.